A women’s clothing brand now makes an unexpected closure of its Washington distribution center, affecting nearly 130 employees.
A Lululemon spokesperson said some employees will relocate to its new Los Angeles, California location as well as other facilities.
Lululemon Athletica is laying off a total of 128 employees as it permanently shutters its distribution center in Sumner, Washington, according to a Worker Adjustment and Retraining Notification (WARN) Act notice dated April 18.
Layoffs are expected to start June 21, according to the notice.
A Lululemon spokesperson told Supply Chain Dive in an email that some of the employees will be retained and relocated to other facilities, including a recently opened distribution center in Los Angeles.
The retailer regularly evaluates its distribution network to help shape and support the future vision of the business, the spokesperson said.
“Following a review of our current infrastructure and the evolution of our fulfillment strategy, which includes a multi-year investment to increase overall capacity and support our growth, we have made the decision to close one of our smaller distribution centers … at the end of 2024,” they said.
Lululemon has been making efforts to advance its supply chain strategy.
Last year, the retailer launched a program to increase supplier diversity in its sourcing operations.
Later in May, Lululemon signed a multiyear partnership with an Australian tech company to help scale its circular efforts through textile recycling, reports Supply Chain Dive.
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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
Other Economy News Today
A massive shoe retailer now announces a new wave of layoffs to hit headquarters this summer, affecting over 700 employees.
Nike has announced its ‘second phase’ of mass layoffs, effective June 28, according to a Worker Adjustment and Retraining Notification (WARN) filing.
A total of 740 employees will be impacted in the retailer’s home state.
The layoffs are part of the 2% workforce reduction Nike announced in February, which is taking place across two phases, the company confirmed via email.
Nike said job titles and the number of employees in each category would be provided at a later date, once the company has determined them.
Bumping rights are not available for the impacted employees, reports Retail Dive.
“Nike’s always at our best when we’re on the offense. The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger,” Nike said in a statement.
“While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates.”
The layoffs are tied to a cost-savings plan Nike unveiled in December, which is aimed at generating up to $2 billion in cumulative savings over three years.
Based on the company’s last annual report, the layoffs to 2% of its total workforce will impact more than 1,600 people.
Savings from the plan are set to be reinvested in driving growth, innovation and profitability.
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Also Read: A Massive Grocery Brand Now Files For Chapter 11 Bankruptcy
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