PROVIDENCE – United Natural Foods Inc. plans to lay off 20 more employees who report to its offices in Lincoln.
The layoffs will not affect any Rhode Island residents. All 20 employees work remotely, according to a Worker Adjustment and Retraining Notification, or WARN notice, sent to the R.I. Department of Labor and Training on March 20. The layoffs are expected to happen during a two-week period starting May 23 and all employees have been notified.
The layoffs come after UNFI told state officials in November 2024 that it planned to lay off 121 employees at its Lincoln offices, which began in January and will continue through June. Of those employees, about 50 live and work in Rhode Island while the rest work remotely.
The second round of layoffs mostly affects positions in accounts payable.
UNFI plans to “cease operations” in Lincoln once the layoffs are complete, according to the WARN notice.
“At UNFI, we are always looking for opportunities to serve our customers and suppliers more efficiently and effectively,” company spokesperson Kristen Jimenez said in an email to Providence Business News on Monday. “Last fall, we announced we would begin taking steps to gradually transfer a portion of our high volume and transactional tasks, as well as contact centers, to a third-party business and technology services provider. This new partnership model gives UNFI access to innovative tools, technology, and processes that will help us serve our customers and suppliers more efficiently and effectively over time.”
Previously, company spokesperson Charles Davis said the company plans to maintain its Providence headquarters and relocate to a new office downtown this summer.
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. UNFI has earned about $1.7 million in qualified job tax credits to date, with the last disbursement being in the third quarter of 2022, according to R.I. Commerce’s reports on its incentive programs.
Earlier this year, UNFI also announced it was shaking up its commercial wholesale organization with the creation of two new divisions.
President of Wholesale Louis Martin will now be president of conventional grocery products and chief commercial officer. Chief Supply Chain Officer Mark Bushway will be president of natural, organic, specialty and fresh products and remain chief supply chain officer.
Each new division, the company said, will have focused sales teams aligned to the unique product and service needs of the 30,000 retail locations that UNFI serves. Both divisions will be supported by dedicated functional experts in merchandising, operations, procurement and supplier services.
“This realignment is another step in the execution of our plan to add value and improve efficiency and effectiveness for our customers and suppliers,” CEO Sandy Douglas said.
Earlier this month, UNFI beat Wall Street forecasts in its second-quarter 2024 earnings. The company reported $8.1 billion in quarterly sales, which is up from the $7.96 billion expected by four analysts surveyed by Zacks Investment Research.
(UPDATE adds Kristen Jimenez as the spokesperson being quoted in the sixth paragraph.)
Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.
