Pitney Bowes’ former e-commerce segment is laying off over 1,200 employees and closing six facilities as the business winds down under liquidator Hilco Global. The majority of the layoffs will occur in early October, with five warehouses set to close, while the sixth facility, a distribution center in Monroe, N.J., will shut down on November 7, resulting in 413 job losses.

The layoffs also include 278 employees at a recently opened warehouse in Rockport, Ill., which will close on October 12. The facility, designed to handle up to 24,000 parcels per hour for the U.S. Postal Service (USPS), had been operational for less than a year. Other affected locations include warehouses in Bloomington, Calif., Canal Winchester, Ohio, Stockton, Calif., and Odenton, Md., which will close in October, impacting an additional 563 employees.

The closures come after Pitney Bowes decided to exit the e-commerce business, a segment that had been losing money annually since 2015. Despite investing over $1.1 billion into the unit, the company saw continuous declines in earnings before interest and taxes (EBIT), totaling $536 million in losses between 2017 and 2023. The divestment of the e-commerce segment follows a board review and was a key issue for activist investors last year, ultimately leading to the departure of former CEO Marc Lautenbach.

In August, Pitney Bowes sold the logistics services unit, now operating under the name DRF Logistics, as part of its efforts to eliminate the segment’s financial losses. The sale, which included facilities and assets like a Kentucky warehouse and fulfillment operations, was conducted at a significantly reduced price, highlighting the unit’s financial struggles.

Despite the challenges, Pitney Bowes is continuing to focus on simplifying the e-commerce experience for customers. The company recently launched ShipAccel, a software solution aimed at helping small and medium-sized businesses (SMBs) negotiate shipping rates, provide real-time tracking, and streamline order processing.

As DRF Logistics proceeds with liquidation, the company may sell off its fleet of trucks and other assets, though the expected recovery value is low. Meanwhile, unsecured creditors of the former Pitney Bowes unit are seeking over $24.7 million in payments, with Priority Express Courier holding the largest claim at $2.3 million.