Alan Ritchey closes NJ hub, cuts 176 jobs amid USPS contract loss

, a major logistics carrier, is closing its Phillipsburg, New Jersey distribution hub and eliminating 176 jobs effective July 17, 2026. S. Postal Service's decision not to renew its contract with the company—a relationship spanning over 60 years. This represents the second significant workforce reduction for Alan Ritchey in 2026, following the January shutdown of its Aurora, Colorado USPS regional transfer hub, which eliminated 729 positions.

Combined, these two facility closures represent over 900 job losses and reflect a broader strategic shift by USPS to internalize logistics operations and reduce contractor dependency. For supply chain professionals, this development underscores the inherent risk exposure of heavy reliance on large government contracts, particularly as government agencies accelerate efforts to bring operations in-house. The Phillipsburg facility, a 511,200-square-foot hub completed in 2021, was purpose-built for mail and logistics operations, making its sudden closure a significant stranded asset. Alan Ritchey's layoffs highlight how contract consolidation at a single major customer can cascade into operational shutdowns across multiple regions, affecting not only the contractor but also downstream service providers, employees, and regional supply chain capacity.

These closures signal USPS's broader network optimization strategy, which prioritizes operational consolidation and cost reduction through vertical integration. For third-party logistics providers and carriers dependent on government contracts, this trend necessitates portfolio diversification and reduced single-customer concentration risk. The incident also raises questions about asset utilization in logistics real estate and the long-term viability of specialized, single-purpose distribution facilities in an environment of increasing operational uncertainty.