Essendant Co., the office supply distributor and subsidiary of Staples, is making major cuts to its U.S. operations, closing several distribution centers and laying off more than 200 employees. The company says this downsizing is part of a broader strategy to streamline operations and improve efficiency in response to a rapidly changing market.
Affected Locations:
- Houston: Essendant will close its northwest Houston facility, impacting 92 workers.
- Charlotte: The Charlotte distribution center is set to close in November, with 58 jobs lost.
- Orlando: By the end of the year, Essendant will eliminate 73 positions at its Orlando facility.
These moves highlight a growing trend in the office supply sector, where companies are reeling from a shift away from traditional office products. As remote work continues to reshape workplace needs and businesses lean heavily into digital solutions, the demand for physical office supplies has slowed significantly. Essendant’s decision to close these locations signals a larger pivot within the industry, with companies prioritizing efficiency and adapting their operations to keep pace with changing consumer habits. While the decision is undoubtedly difficult for the employees affected, it underscores the ongoing transformation in how businesses manage and distribute office supplies.
A Wake-Up Call for the Industry
The closures are a wake-up call for the distribution and logistics sectors, where many companies are now facing a stark choice: evolve or risk being left behind. As the market shifts away from traditional office products, the focus is increasingly on streamlining supply chains and moving toward digital-first solutions. While these layoffs are a blow to local economies, especially in Houston, Charlotte, and Orlando, the ripple effect of this restructuring could set the stage for more innovation within the office supply space, especially as businesses continue to embrace hybrid and remote work models.
