Walmart Closes Illinois Fulfillment Center, Cuts 111 Jobs in NextGen Strategy

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4.10.2026

Quick Facts

Walmart will close its 150,000-square-foot Matteson, Illinois fulfillment center on May 29, affecting 111 employees
Operations will relocate to the company’s automated NextGen fulfillment center in nearby Joliet
Employees receive 90-day paid transition period plus potential $7,500 transfer bonus and relocation assistance

Walmart will permanently close its Matteson, Illinois fulfillment center and eliminate 111 jobs by May 29, according to a March 27 WARN notice filed with the Illinois Department of Commerce and Economic Opportunity.

The closure affects the 150,000-square-foot facility at 21430 S. Cicero Avenue. Operations will shift to Walmart’s 1.1-million-square-foot NextGen fulfillment center in nearby Joliet, part of the retailer’s broader automation strategy.

“We’re continuously evolving our fulfillment network to better serve our customers and members as their needs change,” a Walmart spokesperson said. “As part of this, we’re relocating operations from our Matteson, Illinois, facility to other locations within our network.”

The Matteson facility previously operated as a Sam’s Club before closing in 2018 and converting to a fulfillment center for online orders. The closure represents Walmart’s shift from smaller legacy facilities to highly automated, larger operations.

Walmart also plans to close a Sam’s Club fulfillment center in Worcester, Massachusetts by June 30, cutting an additional 90 jobs. The combined closures eliminate approximately 200 positions across both facilities.

Affected employees receive a 90-day paid transition period to find positions at other Walmart stores, Sam’s Club locations, or company facilities. Associates who transfer to select facilities may qualify for a $7,500 bonus and relocation assistance, plus training on advanced fulfillment technology.

The closures reflect Walmart’s automation-driven supply chain transformation. NextGen facilities operate twice as productively as legacy centers, according to David Guggina, Walmart U.S. Chief E-Commerce Officer.

“That translates into lower shipping costs,” said John David Rainey, Walmart EVP and CFO. “Our shipping costs have been down consistently for many quarters in the 30% range.”

Walmart operates five NextGen fulfillment centers, with plans to service 65% of stores through automation by fiscal year 2026. The company expects approximately 55% of fulfillment center volume will move through automated facilities, improving unit costs by roughly 20%.

The automation strategy has boosted Walmart’s financial performance. Shares have risen 27% over the past year, double the S&P 500’s growth and outpacing Amazon’s performance.