Walmart is set to close its Illinois ORD facility in Matteson, resulting in 111 layoffs effective May 29, 2026. This closure is part of a larger strategic restructuring driven by automation and a shift towards NextGen fulfillment centers. The move occurs as the National Grocers Association (NGA) calls for government probes into Walmart’s alleged abuses of buying power.
Key Takeaways
- Walmart will close its Illinois ORD facility, laying off 111 workers in May 2026.
- The closure is part of broader automation-driven restructuring and a shift to NextGen fulfillment centers.
- The National Grocers Association urges a government probe into Walmart’s alleged buying-power abuses.
Facility Closure and Workforce Impact
Walmart has announced the closure of its fulfillment center located at 21430 S. Cicero Ave. in Matteson, Illinois. This decision will lead to the termination of 111 employees on May 29, 2026. This follows recent layoffs at its Hoboken, New Jersey office and a broader 2025 reshuffle impacting hundreds of employees. However, Walmart is offering affected Illinois associates a $7,500 transfer incentive to relocate to other open roles within its fulfillment network, including Sam’s Club locations. Relocation benefits may also be available for those moving more than 50 miles. Associates unable to secure a new position within the company by the end of the 90-day transition period will be terminated.
Automation and NextGen Facilities
The closure of the Matteson facility is framed by Walmart as a move towards consolidation and efficiency, not a scaling back. The operations are being relocated to the company’s NextGen facilities, which are equipped with advanced automation technology designed to enhance delivery speed, efficiency, and "associate comfort." This strategic shift aligns with Walmart’s broader efforts to leverage automation across its supply chain. The company reports significant cost savings, with automated centers cutting unit costs by 20% year-over-year compared to manual sites. By the end of 2025, Walmart anticipates automated centers will drive over a 30% improvement in cost reduction across its network. Furthermore, Walmart is preparing to open a new, large fulfillment center in Stockton, California, expected to create over 1,000 new jobs by mid-2026.
The ‘Power Buyer’ Controversy
Simultaneously, Walmart faces scrutiny from the National Grocers Association (NGA), which represents thousands of independent grocery retailers. The NGA has formally requested that the Federal Trade Commission (FTC) and the Department of Justice (DOJ) investigate alleged market manipulation by dominant retail power buyers, particularly Walmart. The NGA argues that these practices lead to higher prices, reduced competition, and diminished food access, especially in smaller communities. This push is fueled by recently unsealed court filings from a past FTC case that suggested preferential pricing arrangements were used to maintain Walmart’s price advantage while increasing costs for competing grocers and their customers. Although that case was dismissed on procedural grounds, the NGA maintains that buyer power abuses are a tangible issue impacting consumers.
Sources
- Walmart closes facility, cuts jobs as ‘power buyer’ controversy grows, TheStreet.
- Walmart touts savings from continued automation efforts, Supply Chain Dive.
