Walmart layoffs affect nearly 600 workers at Lehigh Valley distribution center

Walmart is laying off hundreds of workers at a Lehigh Valley distribution center in Bethlehem.

The reduction will officially take place June 2 and will affect 597 people at 3215 Commerce Center Blvd., according to a Worker Adjustment and Retraining Notice filed Monday with the Pennsylvania Department of Labor & Industry. Federal law requires employers to post a WARN notice at least 60 days before a closing or mass layoff of 50 or more people.

The company is planning layoffs at four other facilities as well, according to Reuters. One of them is in Pedricktown in Salem County, N.J., where 201 people will be laid off on June 2, according to a New Jersey WARN notice.

“We recently adjusted staffing levels at our fulfillment centers in select markets to better prepare for the future needs of customers,” a Walmart spokeswoman said in an email Monday. “This decision was not made lightly, and we’re working closely with affected associates to help them understand what career options may be available at other Walmart locations. The facility is not closing.”

Walmart gave its warehouse in Bethlehem a heads up earlier this year on the plans to reduce staff. The store gave certain workers notice in late February, offering them an opportunity to transfer to another warehouse or Walmart store, according to a report in the Morning Call.

“Customer expectations are changing, and we are moving quickly to meet and exceed their needs,” the Walmart spokeswoman said. “As demand grows, we are maximizing our network of stores and fulfillment centers, to deliver items for online customers, when and how they want them.”

The company also has a distribution center at 3027 Commerce Center Blvd. in Bethlehem.

Walmart employs more people in Northampton County than any other employer, as of third quarter 2022, the most recent data available from the Pennsylvania Department of Labor & Industry. The city of Bethlehem is divided between Northampton and Lehigh Counties.

Statewide, Walmart is the largest private company employer. The only entities that employ more people in Pennsylvania are the federal and state governments.

In Philadelphia, Walmart is the 25th largest employer. The company has five stores in the city, and several dozen in the surrounding region.

Walmart has 42 regional distribution centers and last year announced plans to update all of them with automation technology “to transform our supply chain and make warehouse work easier for our associates.” Part of that strategy was a new warehouse in Lebanon, Franklin County, which uses automation technology and is the second of its kind for Walmart. The Lebanon facility opened last year, and the company said it would eventually employ 1,000 people.

Total revenue at Walmart last year was $164 billion, up 7.3% from the year before. Management discussed the technology investments during a conference call about 2022 earnings in February, around the same time Bethlehem associates first learned of forthcoming workforce reductions.

On the call, chief financial officer John David Rainey said, “These are high ROI investments where we’ve got clear line of sight into the return. So to your point, this allows us to not only invest appropriately with our associates and in continued technology, but also to see margin expansion over time.”

Because of its size, Walmart is seen as an important bellwether in the retail market.