United Parcel Service (UPS) will close three facilities in Pennsylvania by June 2025, affecting workers in Dauphin, Allegheny, and Monroe Counties as part of the company’s largest network reconfiguration in history. The closures, targeting sites in Harrisburg, New Kensington, and Stroudsburg, are driven by a push to modernize operations and reduce costs amid economic challenges.
The facilities, located at 1821 S. 19th St. in Swatara Township near Harrisburg, 2006 River Road in Plum near New Kensington, and 2129 Rockdale Lane in Stroud Township near Stroudsburg, are among 73 owned and leased properties UPS plans to shutter nationwide. The “network of the future” initiative, launched in early 2025, seeks to optimize capacity, boost productivity through automation, and lessen reliance on manual labor. The company projects $3.5 billion in savings by 2028, with $400–600 million in 2025 spending to support the overhaul, as stated in its Q1 earnings.
As the sixth-largest employer in Dauphin County in Q3 2024, UPS will cut 20,000 jobs globally by year-end, following 11 facility closures and 12,000 job cuts in 2024. The number of affected Pennsylvania workers is undisclosed, but spokesperson Karen Tomaszewski Hill said, “We are working to place as many employees as possible in other positions.” The closures reflect a strategic pivot, including a plan to reduce Amazon deliveries by over 50% by June 2026. “This volume is not profitable for us nor a healthy fit for our network,” said CEO Carol Tomé, emphasizing that retained Amazon volume, such as returns, remains viable.
Automation is a cornerstone of the reconfiguration. “Network of the Future is targeting all activities for automation within our four walls,” said Nando Cesarone, Executive Vice President and President of U.S. Operations, last year, citing fewer feeder runs and consolidated ground and air feeds as cost-saving measures. The initiative responds to reduced delivery volumes, exacerbated by macro-economic uncertainty and President Donald Trump’s tariffs, which have curtailed business investment.
Despite lower revenue, UPS reported a Q1 2025 net income of $1.19 billion, up from $1.11 billion the prior year, but withheld full-year projections due to economic uncertainty. The company remains committed to reliable pickup and delivery services across over 200 countries. “While our building footprint is changing, our record of reliable service is not,” UPS stated.
