Pitney Bowes is set to lay off 236 employees in Bloomington as it shuts down its e-commerce logistics division following a recent bankruptcy filing. The layoffs, effective October 8, mark a significant step in the company’s effort to restructure and exit its underperforming logistics business, which recorded a $136 million loss last year.
The decision to liquidate the e-commerce logistics segment comes after Pitney Bowes reached agreements with Hilco Global and bondholder Oaktree Capital Management as part of its bankruptcy proceedings. The company filed for Chapter 11 protection last Thursday, listing its debts and assets in the range of $500 million each, according to Bloomberg.
In a notification to the state Employment Development Department (EDD), Pitney Bowes confirmed that employees at the Bloomington facility, located at 11260 Cedar Ave., were given a 60-day notice on August 9. The company’s letter emphasized that the layoffs will be permanent, with no option for affected workers to secure other positions within the company based on seniority, known as “bumping rights.”
The majority of the roles affected by the layoffs include package handlers, forklift operators, and various positions related to e-commerce operations. This move is part of a broader strategy by Pitney Bowes to streamline its operations and address financial challenges.
In addition to the Bloomington facility, Pitney Bowes is also closing a similar logistics operation in Stockton, where 112 employees will be laid off. These closures reflect the company’s efforts to consolidate its operations and focus on more profitable segments amid its bankruptcy restructuring.
Pitney Bowes’ financial struggles have been exacerbated by the underperformance of its logistics business, which has struggled to compete in the rapidly evolving e-commerce sector. The company’s bankruptcy filing and subsequent restructuring plan are aimed at reducing its debt burden and realigning its business operations to achieve long-term sustainability.
The closures and layoffs come at a challenging time for employees and the local communities affected by the job losses. As Pitney Bowes moves forward with its restructuring, the focus will be on stabilizing the company’s finances and positioning itself for future growth in a competitive market. It is yet to be seen if there are more layoffs lined up from Pitney Bowes.
