Target Ends Fulfillment Operations at Two Distribution Centers, Cutting 260 Jobs

Target is shuffling around some workers across its supply chain, cutting 201 jobs at its Indianapolis regional distribution center as the retail giant permanently shutters the warehouse’s fulfillment operation.

Of the employees impacted, 145 were warehouse associates, while 15 focused on inventory control and quality assurance, according to a Worker Adjustment and Retraining Notification (WARN) Act Notice filed July 16. Ten were lead warehouse workers, and another eight were fulfillment operations managers.

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All terminations will occur on Sept. 19, but a majority of the impacted employees have already accepted new roles at this facility and nearby locations, according to a Target spokesperson.

The 1.4-million-square-foot building itself will remain open, with the mass merchant’s regional replenishment operation within the facility not impacted. The replenishment area focuses on keeping inventory in supply to restock shelves at local stores, while the fulfillment area processes shipping orders.

Target first converted a 254,000-square-foot portion of the warehouse to a fulfillment space in 2019 as the retailer took on more online orders.

“As we continue to evolve our supply chain to deliver the ease, speed and value consumers expect, we are adjusting the types of operations performed at our Indianapolis Distribution Center and redistributing certain capabilities to other nearby facilities,” the Target spokesperson said. “These changes impact a limited number of team members who will have the opportunity to apply for different roles within the facility and at nearby locations.”

Target has increasingly leaned on its retail stores to fulfill more orders for same-day pickup and delivery, with stores fulfilling more than 96 percent of total sales in each of the last three years. The company is also scaling its network of sortation centers to 15 locations, which are positioned to help with last-mile delivery.

The affected employees are not represented by a union, so there are no bumping rights for senior members of the team.

The company did not list how many employees still work at the Indianapolis distribution center.

This is Target’s second WARN notice in three months regarding the elimination of warehouse jobs. On June 12, Target said it was laying off 62 employees at its Savannah, Ga. facility, with that site’s fulfillment operation also being discontinued.

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That 2 million-square-foot site serves as one of the retailer’s four import warehouses, which are designed to host cargo from local ports—like the Port of Savannah, in this instance. A spokesperson indicated that Target was shifting one type of fulfillment service from the Savannah DC to other facilities.

Thirty-six warehouse workers were impacted by the layoffs, with seven lead warehouse workers also getting the axe.

Those job cuts are expected to take place Aug. 15. There are 181 total employees at the work site, the WARN notice read.

These layoffs come as a large swath of Target’s employees appear to be losing faith in the mass merchant. A Wall Street Journal report indicated that the retailer internally surveyed its employees in June, and discovered that roughly 40 percent of 260,000 respondents said they didn’t have confidence in the company’s future.

As of Feb. 1, Target has 66 supply chain facilities in total, including distribution centers, sortation centers and other facilities, according to the company’s annual report.

Target isn’t the only retailer that has downsized employment in recent months, with Levi Strauss & Co. closing a distribution center in Hebron, Ky. this month.

Approximately 346 employees are anticipated to lose their job, although some will be able to apply for another gig within the company.

The layoffs are expected to begin Aug. 18 for both union and non-union employees. Only union employees represented by Workers United are entitled to bumping rights.

Levi’s WARN notice did not give a reason for the facility’s closure. However, the company has pushed forward with its direct-to-consumer pivot that has leveraged more outsourced distribution from third parties.

Outside of the apparel industry, home improvement giant The Home Depot is closing a distribution center in Mexico, Mo. effective Oct. 26, according to a WARN notice filed in Missouri on July 17.

Roughly 61 employees will be laid off, the filing said. However, the associates have been encouraged to apply for other roles within the company.

The move doesn’t do much to impact the retailer’s wider supply chain, with Home Depot operating more than 325 distribution centers across North America. Products will be stocked at other Home Depot distribution centers based on regional inventory needs.

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