XPO Logistics to Shutter Rialto Warehouse After Losing Amazon’s Business

XPO Logistics will close its warehouse in Rialto and lay off 126 people who work there next month, after one of its clients decided to cease local operations. The company, which is one of the world’s largest trucking and distribution companies, posted the layoffs to California’s WARN Act website, which lists all major layoffs statewide.

XPO declined to disclose the name of the Rialto client, and the company’s CEO Brad Jacobs warned in a recent earnings call that this year would be considerably weaker because its largest customer was canceling about two-thirds of its business. He also did not identify the customer.

However, multiple sources have named Amazon as XPO’s largest customer. Industry experts said the move is part of the Amazon’s decision to run its own delivery service.

“We believe the shipper that is paring down its parcel injection, brokerage, last mile, and logistics activity with XPO is Amazon,” J.P. Morgan analyst Brian Ossenbeck told Reuters.

XPO is also closing distribution centers in Maryland and Kansas, where Amazon also is the customer, according to Reuters.

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