In a significant operational shift, DHL Supply Chain announced that it would permanently close its Ontario, California distribution center, affecting 346 employees. The closure, set to begin July 1 and finalize by August 30, was disclosed in a filing with California’s Employment Development Department.

The Ontario facility primarily supported e-commerce fulfillment operations, with 222 of the impacted roles listed as order filler pickers. While DHL has not named the specific client, the decision appears to stem from a customer relocating part of its distribution operations.

This move reflects broader trends in the logistics industry, where companies are consolidating facilities and realigning resources in response to evolving market conditions. Just days earlier, UPS also revealed plans to shut down its Holmen, Wisconsin package center—part of a broader network optimization effort that will close over 160 facilities nationwide.

As the logistics landscape continues to shift, providers like DHL and UPS are making strategic decisions to stay competitive through cost efficiency and realignment with customer demands.