UPS to Lay Off 404 Colorado Workers Amid Automation Drive

In a letter signed last Thursday, a United Parcel Service (UPS) human resources employee informed the Colorado Department of Labor and Employment (CDLE) and Commerce City Mayor Steve Douglas that “due to changing business realities in our network,” the company was planning to lay off more than 400 employees at the facility at 5190 Ivy St, effective January 15, 2025.

The layoffs occur as the firm prepares to install additional automated equipment at the location, which is estimated to save $3 billion in costs by 2028, according to The Denver Post.

According to a Worker Adjustment and Retraining Notification letter (WARN), 404 employees will be laid off including 401 in package processing and three in revenue collection. Denver7 got the letter on Monday which compels firms to offer employees with a 60-day notice in the event of a mass layoff.

The letter states that both union and non-union workers will be impacted by the layoffs. According to the UPS human resources staffer, union workers with seniority at the organisation represented by the International Brotherhood of Teamsters Local No. 455 will have the ability to apply for different jobs within the organisation, a practice known as bumping privileges.

Last week layoffs were announced by a number of companies including UPS. In a WARN letter sent to state officials on Friday, aerospace giant Boeing said that it would be permanently terminating about 63 workers in Colorado with effect from January 17, 2025.