Walmart will close its Matteson fulfillment center and lay off 111 employees by May 29, the company said in a March 27 filing with the Illinois Department of Commerce and Economic Opportunity.
The closure is part of the company’s adjustment to growth in its fulfillment services and changing customer needs, including E-commerce growth, a Walmart spokesperson said. As part of that, the company uses the centers to maximize speed, service and reliability for its customers, the spokesperson said.
“We’re continuously evolving our fulfillment network to better serve our customers and members as their needs change,” the company spokesperson said in a statement.
Employees were notified Feb. 25 of the closure and offered the opportunity to transfer to nearby facilities or other Walmart locations nationwide, said the spokesperson. Associates who move to select facilities could be eligible for a $7,500 transfer bonus and relocation assistance, along with on-the-job training using advanced fulfillment technology.
More than half of the facility’s employees were reassigned to other Walmart locations as of Thursday, the spokesperson said. While more than 111 layoffs were initially planned in February, that number decreased as workers were transferred, the spokesperson said.
“We’re grateful for everything our associates do every day, and we’re committed to working one-on-one with each person to find the best path forward so they can remain part of the Walmart family,” the spokesperson said.
Matteson Village Administrator Anthony Burton said the facilty brought a lot of activity and jobs to the area, but he does not expect the closure to hamper the village.
“Unfortunately you want every dollar, but it’s not doing to hurt us anywhere,” Burton said. “We are growing to the point where we are not going to feel it like maybe some communities that don’t have as much as growth as we do right now.”
He said Walmart officials assured the village every employee would be offered a job at other Walmart facilities.
“Walmart is working really hard and we’re working with them to ensure that, thank God they are open to helping fill jobs for these individuals,” he said. “I think that’s probably the most important thing, that these individuals have opportunities for work.”
He also said Walmart officials told him the facility closed because it outgrew its revenue and needed more space. He said Matteson does not have space readily available to house a larger facility.
“It’s actually a good thing for Walmart,” Burton said.
Burton said the village is developing plans to fill the building. He said he could not share specific details, such as if the new tenant would be a large company like Walmart.
“We are working on some pretty good possibilities,” he said.
Burton said the village has seen a lot of economic grown in recent years, from about $880 million in total retail sales in 2023 to about $1.1 billion this year. He said fulfillment centers aided the growth, especially the Amazon fulfillment center at 7001 Vollmer Road.
He also estimated the village has brought about 2,000 employees to the area in the past four to five years.
Sean Howard, a spokesperson for the village, said if an employee does not receive an employment offer from Walmart, they can seek assistance with the village.
The Matteson Walmart fulfillment center opened in 2018, according to the Walmart spokesperson. The building previously housed a Sam’s Club, which closed in 2018 as one of 60 Sam’s locations closed by Walmart that year. More than 150 employees were affected by the closing of the Matteson location.
awright@chicagotribune.com
