Levi Strauss & Co. (LS&Co.), parent of Levi’s denim and sportswear and the Beyond Yoga active lifestyle brand, is permanently closing its 772,150-square-foot distribution center in Hebron, KY, with layoffs beginning at the end of August 2026. The company said that roughly “303 employees are expected to be laid off as a result of the closure, although some employees will be able to apply for a job at another company location.” 

The move is another step in the company’s transition to a hybrid logistics model by outsourcing distribution to third-party logistics providers like Maersk and GXO Logistics. The company still owns DCs in Henderson, Nevada and Etobicoke, Canada, and operates eight more under lease, including an automated e-commerce fulfillment center in Erlanger, KY, that opened in July 2023.  

Maersk is also reportedly operating a 1.2 million-square-foot omni-channel facility near Columbus, OH. 

Spectrum News first reported in June 2025 that the Hebron DC was targeted for closure after the company sent a letter under the Worker Adjustment and Retraining Notification (WARN) Act to the Kentucky Department of Workforce Development on June 16, 2025. The closure was expected to affect approximately 346 employees at the company-owned distribution center. 

Spectrum said at the time that LS&Co. did not provide a reason for the closure but noted that the company had announced earlier last year that it would undergo a restructuring plan to consolidate operations and cut costs as it pivots to being a DTC-first brand. This reportedly included a 10 percent to 15 percent reduction in its corporate workforce. 

The company reportedly kept the building open for another year to fulfill high demand as it took longer than expected to transition products to other warehouses. 

Harmit Singh, outgoing chief financial and growth officer, Levi Strauss & Co., noted on an April 2026 conference call to discuss Q1 results that the U.S. distribution network transformation continued to progress. He said that “distribution expenses versus the prior year improved as a percentage of revenue.” 

“We are working towards completing the transition by midyear, and costs we expect to incur are factored into our updated guide,” Singh said at the time. “Longer term, this transition positions our network to support omni-channel growth and drive efficiency.” 

LS&Co. will report its 2026 second quarter results this afternoon. 

Timelines 
The company reported last week that union-represented employee separations will begin on or about August 30, 2026, or during the 14-day period beginning on that date. For the company’s “home office population,” separations are expected to begin on or about August 30, 2026, or during the 14-day period beginning on that date. 

Some of the affected employees are represented by Workers United Local 2550 and its international union. As a result, the company said that notice of the closure is being provided to Lynne Fox, International president, Workers United, an SEIU affiliate, via e-mail upon request; Casey Martin, regional director, Workers United Central Region, an SEIU affiliate, via e-mail by request; and Karen Sharp, Hebron Site president, Workers United Central Region, via e-mail only by request. 

LS&Co. said bumping rights for Workers United-represented employees are governed by applicable labor agreements. Bumping rights are not available for unrepresented employees. 

LS&Co. Associate General Counsel Emily Knoles filed the WARN Act Notice on June 30, 2026. 

Image courtesy Levi Strauss & Co. 

See below for the first read of the Levi Strauss & Co. financial results for the second quarter:

Beyond Yoga’s Revenues Jump 16 Percent in Fiscal Q2, Levi’s Raises FY Guidance