DHL, one of the world’s largest logistics and shipping companies, is laying off hundreds of employees and shutting down a key facility in California amid significant changes in its customer’s distribution strategy. The company has confirmed plans to lay off 364 workers at its package handling facility in Ontario, California, according to a Worker Adjustment and Retraining Notification (WARN) filed with the state.

The news was first reported by the Orange County Register, highlighting the growing turbulence in the logistics and supply chain sector across the United States.

The affected roles at the Ontario facility span a wide range of operational responsibilities, including general managers, training supervisors, inventory control supervisors, inventory clerks, mechanics, and order filler pickers. DHL informed the state that the layoffs will be phased between July 1st and August 31st, 2025, with full closure of the facility expected by the end of August.

In a statement regarding the shutdown, DHL Supply Chain said the decision was influenced by changes in a client’s business model. While the company declined to name the client, it did note that “one of its customers will be relocating a part of their distribution operations,” prompting DHL to phase down and ultimately close the supporting warehouse in Ontario.

“DHL Supply Chain has been informed that one of its customers will be relocating a part of their distribution operations,” a spokesperson said. “As a result, the warehouse facility that supports their operations in Ontario, California, will begin phasing down July 2025 and will close August 2025.” The company added that it was “not at liberty to disclose information about its customer’s operations” and therefore would not provide further comment on the matter.

This development comes at a time when the logistics and shipping industry is grappling with multiple pressures. From rising operational costs and vehicle pricing to disruptions caused by shifting trade policies and tariffs, many global and domestic logistics firms are being forced to re-evaluate their operations.

DHL is not alone in downsizing amid these headwinds. UPS, another major player in the logistics sector, recently announced it would lay off 20,000 employees and shutter 73 facilities across the US. The company attributed the drastic move to a sharp 50% reduction in shipping volume from Amazon, following the implementation of new tariffs. This sharp drop in demand from a major client significantly impacted UPS's revenue and operational scale.

The situation reflects a broader realignment in the logistics industry, where companies are responding to unpredictable economic conditions, changes in customer expectations, and digital transformation. Logistics providers, even those as large as DHL and UPS, are under pressure to streamline operations, improve cost efficiency, and align resources with real-time demand.

For DHL, the Ontario facility closure marks a significant downsizing in California—a key region for logistics given its proximity to major ports and trade routes. The closure and job losses are expected to impact hundreds of families, with the affected employees facing uncertainty and potential challenges in finding new employment in an already stressed sector.

While DHL has remained relatively quiet about its long-term strategy in light of these layoffs, the company has previously indicated a growing focus on automation, digital supply chain integration, and AI-powered logistics solutions. These efforts may offer long-term value but often coincide with workforce reductions in traditional logistics roles.

This announcement also adds to the ongoing national conversation around job security in the logistics sector, particularly as e-commerce, trade regulations, and client supply chain strategies continue to shift rapidly. With many companies now reassessing their distribution footprints and investing in technology, physical facility consolidation has become an unfortunate trend.