Fanatics Slashes Another 100 Jobs; Amazon Vendor Cuts Roles After Contract Loss
As layoffs continue to plague employees throughout the U.S, two more companies just joined the list of entities slashing roles this year.
Daifuku, a vendor which Amazon has cut ties with, will lay off workers throughout the country as a result of the severed contract. Meanwhile, Fanatics announced that it will pare down its workforce in a restructuring.
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Daifuku’s layoffs brought on by contract issues with Amazon
Daifuku, a material-handling equipment company, has filed Worker Adjustment and Retraining Notification (WARN) paperwork in five states after losing its vendor contract with Amazon.
The layoffs, which in all cases will begin on April 22, will affect 434 employees of the American subsidiary of the Japanese company, nearly 300 of whom currently work in an Amazon-owned facility.
33 Daifuku employees working at an Amazon distribution center in Charlotte, North Carolina, will be laid off as a result of the contract loss, according to a WARN notice.
An additional 67 workers employed by Daifuku working at an Amazon fulfillment center in Baltimore will lose their jobs in April, per a separate WARN notice.
Employees in Colorado have fared even worse. Daifuku Services America filed three separate WARN notices in the state: one for its employees at an Amazon fulfillment facility in Colorado Springs, another for its workers the e-commerce Goliath’s Thornton fulfillment center and a third for its employees working in the Prime purveyor’s sortation center in Aurora.
Statewide, those layoffs will impact 196 employees: 89 in Colorado Springs; 75 in Thornton and 32 in Aurora. In all instances, Daifuku noted in its WARN filings that, “The action is expected to be permanent and is precipitated by a vendor’s cancellation of a contract.”
Sam Stephenson, a spokesperson for Amazon, said employees affected by the Daifuku layoffs will be eligible to apply for new positions with Amazon and its vendors.
“As part of our regular course of business, we evaluate our vendors based on a number of factors and make changes to meet our business needs. As a result of a recent review, we’re changing maintenance vendors. Employees of our current vendor will have the opportunity to apply for available positions at Amazon and other contracted vendors,” Stephenson told Sourcing Journal in a statement.
While employees in Maryland, North Carolina and Colorado will be laid off from Amazon’s facilities, some employees in the Southwest will be laid off from a Daifuku-owned office in Texas. 38 roles in Carrollton, Texas, will be axed from the company, which will also cut 100 Oklahoma-based employees associated with its Carrollton office, WARN notices show. Amazon does not own, nor do business out of, the Carrollton location.
Daifuku did not return Sourcing Journal’s requests for comment.
Fanatic restructuring to snip 100 jobs
Fanatics announced it would lay off just over 100 employees—less than 1 percent of its total workforce—as part of a restructuring. The company’s website notes that it has over 22,000 employees.
In January, the Nike partner filed a WARN notice stating it would sever ties with over 200 employees in Jacksonville, Florida, ahead of its plan to close the distribution center it has there.
The MLB uniform maker will now cut positions from its facility in Easton, Pennsylvania. The layoffs come just five months after Fanatics hired the new CEO of Fanatics Commerce, Andrew Low Ah Kee.
A spokesperson for the company said the business cut positions that were no longer necessary for the business’ progression.
“As we continue to evolve from a merchandise company into a global digital sports platform, our organizational structure should naturally transition alongside it. We announced a strategic restructuring of our Fanatics Commerce business to make the fan experience even more central to everything we do,” the spokesperson said in a statement. “As part of this restructuring, we uncovered a very small number of positions that were no longer in alignment with our strategic priorities. We thank those individuals impacted for their contributions and wish them nothing but the best moving forward. These are never easy decisions, but by making these changes, we’re able to further invest in the areas we have identified for significant growth, all with the fan being our core focus.”
