News Summary
United Parcel Service Inc. is set to temporarily close its customer service center in New Orleans for technology upgrades starting September 2025. This decision will impact 177 employees, consisting of 164 part-time and 13 full-time staff. The closure reflects a trend at UPS to restructure amid declining package delivery volumes and increased automation, with potential layoffs raising concerns about job security. The company aims to eventually reassign affected workers to other roles; however, the future of the facility remains uncertain.
New Orleans Facility Closure to Impact 177 Workers
United Parcel Service Inc. (UPS) has announced plans to temporarily close its customer service center located at 5700 Morrison Road in New Orleans East for essential technology upgrades and renovations beginning in September 2025. This closure is projected to affect a total of 177 employees, comprised of 164 part-time and 13 full-time staff.
The decision to shutter the Morrison Road facility aligns with a larger trend at UPS to restructure operations in response to declining package delivery volumes and the increasing use of automation over the past three years. As part of this ongoing revamp, UPS filed a Worker Adjustment and Retraining Notification (WARN) in relation to the closure, highlighting the potential job impacts.
The closure is set to take effect on September 8, 2025, with the company aiming to implement measures that would allow for the placement of the affected employees into other roles within the organization. No definitive timeline has been provided for when the facility is expected to reopen, but it is hoped the renovations will be completed sometime next year.
In addition to the current closure, UPS has a history of making workforce changes at this location. Last October, another customer service center adjacent to Morrison Road was closed; however, the number of employees impacted by that decision has not been disclosed. It is also noteworthy that UPS did not file any WARN notifications in the state of Louisiana during the previous year.
The potential layoffs raise questions about the job security of those affected, especially in light of recent trends at UPS. Over the past two years, the company has let go of approximately 14,000 employees globally and has initiatives to cut an additional 20,000 jobs in the current year while also shutting down 76 facilities. As of the end of the prior year, UPS reported a workforce of around 490,000 employees worldwide.
Union Representation and Employee Rights
Employees working at the Morrison Road facility are represented by Teamsters Local 270, which covers workers with bumping rights based on seniority. This may provide some avenues for job protection or reassignment for impacted employees. However, the company has yet to clarify how many of the workers affected by the closure are union members or what the chances are for rehiring once the facility is back in operation.
Broader Industry Context
The planned closure at UPS’s New Orleans facility mirrors broader patterns within the package delivery industry. Since late 2022, major delivery firms have collectively eliminated over 100,000 jobs in the U.S. due to a notable slowdown in demand following the post-pandemic boom in online shopping and package deliveries. This downturn has prompted UPS and its competitors to reevaluate staffing and operational strategies.
As the logistics industry continues to evolve amid changing consumer behaviors and economic pressures, the fate of UPS employees in New Orleans remains uncertain. Stakeholders are watching closely to see how the company navigates these challenging circumstances in the year ahead.
Deeper Dive: News & Info About This Topic
- NOLA: UPS New Orleans East Facility Closure Threatens Job Losses
- Supply Chain Dive: UPS Warehouse Layoffs
- ABC7: UPS Layoffs Announcement
- Wikipedia: United Parcel Service
- Google Search: UPS New Orleans Closure
