Jobs at risk as company plans to leave warehouse

GXO said its warehouse operations on Darlington Road, in Northallerton, would stop by 31 October

Around 90 jobs have been put at risk due to the proposed closure of a company's operations at a warehouse in North Yorkshire.

Logistics company GXO said its activities on Darlington Road, in Northallerton, would stop by 31 October, with most of the workers being redeployed and a small team being kept on until the end of 2025.

It is understood that the company entered collective consultation with both Prospect Union and CWU due to "significantly lower volumes of activity" in operations.

BT, which outsourced the running of the warehouse to the logistics company in 2022, said it would continue to have a base at the site.

A spokesperson said: "BT is not closing its Northallerton site and will continue to operate transport and other services from that location.

"However, because of significantly lower volumes of activity the warehouse operation that is currently run by logistics partner, GXO, is proposed for closure, and we are consolidating warehouse activity into other BT operations that are managed by GXO.

"Affected GXO employees are being consulted on the options available to them."

In a memo to staff seen by the Local Democracy Reporting Service, Keith Haynes, GXO general manager for consumer, added there was a "clear business case" to move its warehouse operation out of Northallerton.

'Discuss all options'

He said: "This proposal drives savings and operational synergies across the contract.

"I appreciate this is a very difficult message to hear and I want to reassure you that GXO are committed to constant communications with every single colleague on site during this time throughout the consultation period.

"We will do everything we can to redeploy colleagues at risk following this announcement and discuss all possible options throughout the consultation period which will be at least 30 days."

It is understood that around 60 people are employed directly at the warehouse, with a further 30 agency staff working at the site, according to the Local Democracy Reporting Service.

Northallerton mayor Andrew Hugill said he was concerned over "the impact on local people and the wider impact on the economy of the town".

He added the town council would also be taking a "keen interest" in the future use of the site.

Meanwhile, workers have contacted Richmond and Northallerton MP Rishi Sunak to ask for his support.

A spokesperson for the MP said he had written to both BT and GXO seeking assurances that staff would be offered opportunities and support to find alternative positions with the two companies.

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