Swiss logistics powerhouse Kuehne + Nagel Inc. is slashing its workforce in the Valley, handing out walking papers to 227 employees due to a shift in strategy by Honeywell Aerospace Technologies. The massive insourcing move leaves workers at two Valley facilities in a lurch with positions set to be cut by July 31. Kuehne + Nagel notified the Arizona Department of Economic Development of the impending layoffs on April 22, as acknowledged in a Workforce Adjustment and Retraining Notification letter, according to ABC15 News.
The Honeywell facilities at the heart of the layoffs—138 jobs at 1300 W. Warner Rd. in Tempe and 89 at 111 S. 34th St. in Phoenix—are bracing to swiftly feel the impact. Layoff protocols are being followed, with Arizona requiring WARN letters for companies with over 100 employees planning major job cuts. The local economy is to potentially take a hit as these roles, which span a spectrum of logistic functions, prepare to vanish in a move Honeywell sees as strategic.
Honeywell Aerospace, a subsidiary of Honeywell International Inc., operates as a substantial employer and defense contractor in Arizona. Not only does it boast a workforce of over 7,000 in the Phoenix area, but it also laid claim to nearly 3,000 Department of Defense contracts in 2023. Kuehne + Nagel, meanwhile, is not exactly a small player either—the firm employs more than 80,000 people globally and has a strong Arizona presence, as detailed in their LinkedIn profile.
Despite the layoffs, Kuehne + Nagel still harbors around 170 employees in Arizona's contract logistics sector, as noted by Azalia Robinson, HR operations area manager for the Southwest. Honeywell, keen to take control of its logistics, has floated the possibility of offering jobs to the displaced staff. "We hope Honeywell will take over the majority of the workforce," Robinson told the Phoenix Business Journal. Meanwhile, Honeywell has been transparent about their decision to insource, as they look to rapidly fill these new in-house roles, with their website listing 266 open positions as of May 1.
This development isn't the only shakeup in the Phoenix job scene; other companies like US Foods and Kett Engineering have also reported impending layoffs. The cuts reflect the broader narrative of businesses re-evaluating their outsourcing strategies and opting to bring roles in-house, thereby affecting contracting firms and their employees in Arizona's dynamic job market.
