Home Industries Food & Agriculture UNFI to lay off 121 employees tied to Lincoln office

UNFI to lay off 121 employees tied to Lincoln office

Updated at 3:19 p.m. on Nov. 29.

By

Katie Castellani

-

11/29/2024

UNFI — UNITED NATURAL FOODS INC., or UNFI, announced it will be laying off 121 employees who report to its Lincoln location.

PROVIDENCE – United Natural Foods Inc. has notified state labor officials that it will be laying off 121 employees who report to its offices in Lincoln. The layoffs are expected to happen during a two-week period starting Jan. 24, and during another two-week period starting June 20, according to a Worker Adjustment and Retraining Notification,

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PROVIDENCE – United Natural Foods Inc. has notified state labor officials that it will be laying off 121 employees who report to its offices in Lincoln. The layoffs are expected to happen during a two-week period starting Jan. 24, and during another two-week period starting June 20, according to a Worker Adjustment and Retraining Notification, or WARN notice, sent to the R.I. Department of Labor and Training on Nov. 21. Of the 121 employees, about 50 live and work in Rhode Island while the rest work remotely. All affected employees have been notified. The layoffs mainly affect positions in accounts payable, billing and human resources.

Charles Davis, company spokesperson, said the company is transferring part of the high volume and transactional billing, invoice and payroll tasks and contact centers to a third-party business services and technology services provider.

“We expect this change will allow us to serve our partners more efficiently and effectively over time,” Davis said. UNFI has been operating a "shared services" center at 1 Albion Road in Lincoln since 2017, when it signed a lease to occupy the former facilities of the penmaker A.T. Cross. At the time, UNFI said it would hire up to 150 people at the Lincoln office and sought tax credits from the state. R.I. Commerce Corp. agreed to award $1.9 million in Qualified Jobs Incentive Tax Credits if the company met certain levels of job creation. It was not immediately clear how many tax credits UNFI has been awarded. It was also not clear if UNFI is vacating the Lincoln building completely. Davis said the company plans to maintain its Providence headquarters and relocate to a new office space downtown in the summer of 2025. The job cuts come as the natural and organic food wholesaler, which is based at the American Locomotive Works complex on Iron Horse Way in the Valley neighborhood of Providence, is facing a class-action lawsuit. Law firm Aaron Katz Law LLC and Wagstaff & Cartmell LLP announced on Nov. 8 that it filed the suit on behalf of NYSM Organics LLC, a Martha’s Vineyard food company and other suppliers that accused UNFI of breaching its contract and engaging in deceptive trade practices. The complaint, filed in R.I. Superior Court on Nov. 3, NYSM Organics LLC claims UNFI took “prompt payment” discounts on invoices even when payments were delayed, justifying these deductions by citing negative account balances that arise from UNFI’s own billing practices. This practice, the complaint claims, placed an undue financial strain on small and emerging natural food brands, many of whom operate on narrow profit margins and rely on fair dealings to remain viable in a competitive market. "At UNFI, we value all our supplier relationships and take any concerns seriously," Davis said. "We are currently reviewing the details of the complaint filed by NYSM Organics LLC and will work through the legal process on next steps." NYSM is accusing UNFI of violating two counts of breach of contract, quasi-contract claim for restitution and violating the Massachusetts Consumer Protection Act. The proposed class action, filed by law firm Anapol Weiss seeks to represent all food suppliers who have been similarly affected by UNFI’s invoicing practices. The complaint seeks various forms of relief, including compensatory damages, restitution, and an injunction to prevent UNFI from continuing these practices. A hearing is scheduled before Justice Brian Stern on Dec. 2. UNFI operates over 50 distribution centers nationwide, servicing more than 30,000 customers and generating approximately $31 billion in annual revenue. (Updated adds comment from the company about planned layoffs) Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.