Walmart Closes Two Fulfillment Centers, Impacting Over 200 Jobs

Retail giant shutters facilities in Illinois and Massachusetts as it prioritizes automation and larger distribution hubs.

Apr. 2, 2026 at 7:05pm

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A high-end, photorealistic studio still-life photograph featuring a neatly arranged set of premium, polished industrial objects such as metal gears, robotic components, and warehouse shelving units on a clean, monochromatic background, conceptually representing the automation and efficiency of modern retail supply chains.As Walmart continues to invest in automation and larger distribution hubs, the closure of smaller fulfillment centers signals the retail giant's strategic shift towards a more efficient, technology-driven supply chain.Worcester Today

Walmart is shutting down two of its e-commerce fulfillment centers, one in Matteson, Illinois and another in Worcester, Massachusetts. The closures will impact a total of over 200 employees at the 150,000-square-foot 'ORD' facility in Matteson and the 138,000-square-foot Sam's Club fulfillment center in Worcester. The company says it is relocating operations to larger, more automated distribution hubs as part of its ongoing supply chain transformation.

Why it matters

These closures reflect Walmart's broader strategy of prioritizing automation and larger, more efficient fulfillment centers to manage inventory and delivery costs. As the retail giant continues to invest heavily in its supply chain, smaller legacy facilities are being consolidated or shut down in favor of next-generation distribution hubs that leverage robotics and other advanced technologies.

The details

The Matteson, Illinois facility used to be a Sam's Club store before being converted to a fulfillment center in 2019. The Worcester, Massachusetts site was also previously a Sam's Club store. Both are now being shuttered, with operations shifting to larger, more automated distribution centers. Affected employees will be offered the opportunity to transfer to other Walmart facilities or receive severance packages.

  • Walmart informed employees of the Matteson, Illinois closure in February 2026.
  • Layoffs at both the Matteson and Worcester facilities are expected to begin on May 29, 2026.

The players

Walmart

An American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.

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What’s next

Walmart says it will offer affected employees the opportunity to transfer to other facilities or receive severance packages. The company is also investing heavily in automation and larger distribution hubs as part of its ongoing supply chain transformation.

The takeaway

These closures highlight Walmart's strategic shift towards more efficient, automated fulfillment as it seeks to manage inventory and delivery costs. While impacting over 200 jobs, the move reflects the broader trend of retailers optimizing their supply chains through technology and consolidation.