United Parcel Service is temporarily closing one of its Denver region facilities and letting go of more than 400 workers – marking one of the largest layoffs announced this year in Colorado.

The shipping company, headquartered in Atlanta, alerted state authorities about the site closure in Commerce City in a letter last week as required by the Worker Adjustment and Retraining Notification Act (or WARN). UPS said in the letter the layoffs are due to “changing business realities in our network.”

UPS said the workers at the facility on 5190 Ivy Street will no longer be employed on Jan. 15, 2025 — after the busy holiday shopping season.

The layoffs will affect both union and nonunion workers. UPS workers are represented by Teamsters Local No. 455, the local union affiliate of the International Brotherhood of Teamsters.

UPS and Teamsters Local No. 455 did not respond for comment by press time Monday.

The shipping logistics company announced in March its “Network of the Future” initiative, seeking to automate any aspect of its business it can. It planned to close up to 200 facilities to consolidate operations and save on labor costs as the company looks toward automation, according to industry publication Supply Chain Dive.

UPS is looking to save $3 billion by 2028, Nando Cesarone, executive vice president and president of U.S. operations, told investors and analysts earlier this year.

“Network of the Future is targeting all activities for automation within our four walls,” Cesarone said. “These building consolidations and automations yield real savings. For example, we’ll have fewer feeder runs. We’ll be able to eliminate both a.m. and p.m. ground and air feeds in many, many locations.”