Macy’s to Close Key Fulfillment Centers, Cut 1,000 Jobs

Macy’s Plans Major Fulfillment Center Closures

Macy’s will close three large direct‑to‑consumer fulfillment centers in 2026, eliminating roughly 1,000 jobs as it redesigns its U.S. distribution footprint. According to Worker Adjustment and Retraining Notification (WARN) filings and company statements, the retailer is shuttering two facilities in Cheshire, Connecticut, where it has operated since 1986, resulting in 993 permanent job cuts. A separate distribution center in South Windsor, Connecticut, will also close in March, with 163 layoffs tied to that site, 106 of which occurred before January 10.

Macy’s said the moves are part of “ongoing work to modernize our supply chain to better serve customers, while simplifying how we operate.” The company characterized the Connecticut actions as affecting about 1% of its workforce, noting it had approximately 94,189 full‑ and part‑time U.S. employees across its Macy’s and Bloomingdale’s banners as of February 1 of the prior year.

In addition to the Connecticut changes, Macy’s plans to close a 2.2 million‑square‑foot direct‑to‑consumer facility in Owasso, Oklahoma, on March 28. The company’s 2024 annual report said that once the Connecticut and Oklahoma locations are shuttered, Macy’s will operate 22 distribution or fulfillment centers within its logistics network.

Impact on Workers and Local Communities

The Cheshire complex, totaling 719,000 square feet, is seeing phased layoffs across job categories. Of the 993 roles being eliminated there, 485 are fulfillment associates and 193 are power equipment operators, with another 72 in inventory control and quality assurance. Night operations and talent acquisition teams are expected to be terminated by March 14, while part‑time operations workers remain employed until April 4.

Full‑time operations staff at Cheshire will stay on longer, with weekend workers scheduled for dismissal on August 1 and weekday personnel, along with employees in maintenance and asset protection, set to exit on August 29. A small number of staff in those areas will remain through April 16, 2027 to handle decommissioning. Two employees at a Bloomingdale’s Photo Studio located within the complex are also being laid off in March.

Macy’s says it is offering transfer opportunities where available, along with severance and support where applicable. Employees do not have bumping rights. Local authorities in Cheshire report they are coordinating with Macy’s management, the Northwest Regional Workforce Board and the Connecticut Department of Labor on job fairs and transition resources for affected workers.

Shift Toward Automation and a New Hub in North Carolina

The closures coincide with the ramp‑up of a new, largely automated fulfillment hub in China Grove, North Carolina. Macy’s described the 2.5‑million‑square‑foot facility as a dual‑purpose site serving both e‑commerce fulfillment and store replenishment. When first announced in 2022, the $640 million project was expected to employ nearly 2,800 workers; by the end of 2025, Macy’s said around 800 employees had been onboarded.

The company said the China Grove center now accounts for roughly 30% of its digital supply chain capacity. In a January 8 letter to employees outlining its three‑year “Bold New Chapter” reinvigoration strategy, CEO Tony Spring cited “faster, more reliable operations, supported by our modernizing supply chain” as one of four pillars of the plan’s progress.

Earlier, in May 2023, Macy’s had divested one of the Cheshire warehouses in a sale‑leaseback transaction for $25.3 million, continuing to occupy the site until it was marketed again in 2025. Despite the distribution changes, Macy’s noted that none of its six department store locations in Connecticut are being closed, and the recently announced closure of 14 stores across 12 states does not include any Macy’s stores in the state.

Balancing Cost Cuts With Service Levels

Macy’s positioned the distribution network changes as a way to lower costs and simplify operations while maintaining or improving service for digital and omnichannel customers. The company linked its strategy to evolving consumer expectations around speed and reliability of delivery, and to the need to better align its logistics footprint with current demand patterns.

The company’s actions come as other large retailers also reevaluate distribution assets in response to automation opportunities and e‑commerce shifts. Macy’s emphasized its appreciation for the role the Connecticut and Oklahoma facilities have played over the years, while underscoring the importance of modernized, automated hubs such as China Grove in supporting future growth.