Penguin Random House Will Close the Two Penguin Warehouses By June 2015

Publishers Lunch

Penguin Random House leaders Markus Dohle and Madeline McIntosh announced Wednesday afternoon that the company will "regrettably" close two of their four current warehouse/operations centers by June 2015, in Pittston, PA and Kirkwood, NY. They describe it as part of "the difficult, yet necessary, decisions we have made regarding our future warehouse network."

"Additionally, several support and distribution functions for Penguin currently performed in Pearson's Cranbury, and Old Tappan, NJ offices will be relocated during this same time frame, as will Penguin’s Inside Sales department."

As a result, all US fulfillment operations will be merged into the Westminster, MD and Crawfordsville, IN locations. The new combined shipping processes will not being for a year, until February 2015, "with full rollout expected to be completed by mid-year 2015."

The company does not disclose numbers about employees in their various divisions as a matter of policy and is not indicating how many jobs will be eliminated as a result of the supply chain consolidation. A Kirkwood paper notes that the facility employed about 280 people as of 2006, and an Elmira newspaper says that yesterday's announcement to employees in Kirkwood was in a room set with 300 chairs. "Everyone was kind of in shock" at the announcement, forklift operator Larry Butler told them. "A lot of people were crying."

Spokesperson Stuart Applebaum notes that "we don’t yet have a precise number of the jobs attrition because there will be relocation opportunities for some of the positions, and we are hoping our people take us up on this offer."

Dohle and McIntosh acknowledge in their letter that "the impact on our colleagues who will be leaving because of this decision is extremely painful and difficult. Regrettably, it is just not logistically or financially feasible to integrate the Kirkwood and Pittston facilities. Expanding our fulfillment capabilities elsewhere does not lessen our concern for those employees who will be affected by next year’s closings. We are extremely grateful for their many extensive contributions to Penguin’s success, and we will be discussing with them the effects of the consolidation, including transitional and post-closing support, to help them through this time."