Michaels closes distribution center, laying off hundreds in California

On June 6, 2025, Michaels announced the closure of its distribution center located on W. Sugar Road in Tracy, California. This decision, communicated through a WARN Act notification, indicates that the facility will cease operations effective August 4, 2025. The company informed that 229 employees would be affected by the layoffs resulting from this closure, causing significant disruption to the local job market. The closure of the Tracy center is part of a broader trend in which various companies have also announced layoffs and facility closures within the Central Valley region in California. Notably, recent months have seen UPS in Stockton and Blue Diamond Growers in Sacramento facing similar circumstances. Despite this closure, Michaels maintains that its Lancaster distribution facility is actively hiring, suggesting a strategic shift rather than a complete withdrawal from the Californian market. Michaels, known for its retail presence in arts and crafts, continues to have distribution facilities across the United States. The company’s decision to close the Tracy location raises concerns about the potential impact on the community and the surrounding economy, particularly as it follows a pattern of declining job opportunities in the area. Local officials, businesses, and communities may need to adapt to these changes, both in terms of workforce realignment and economic support for those who will be displaced by the layoffs.