California Delivery Contractor to Close Operations, Eliminate 106 Jobs

Capstone Delivery, an Amazon Delivery Service Partner, will close its South Gate, California facility on November 21, resulting in the termination of 106 positions. The company filed a Worker Adjustment and Retraining Notification (WARN) notice on September 23, indicating a permanent closure of the operation.

The affected roles include 94 Delivery Associates, six Helpers, and six Managers. Capstone has operated from the South Gate location for approximately six years, having begun its operations there in 2020. The company utilized Amazon-branded vehicles and uniforms to provide delivery services throughout the Greater Los Angeles area.

This closure is part of a wider trend impacting the freight economy. A recent Freight Distress Report highlighted reductions or closures at 15 companies across nine states, affecting an estimated 1,850 workers. These cuts span various logistics contractors and related businesses.

Katia Daher Anenberg, the owner and operator of Capstone, immigrated to the U.S. from Lebanon and worked in a Los Angeles mall before pursuing higher education at Santa Monica College and UC Berkeley, where she earned a degree in Sustainable Development.

The final day of work for Capstone's South Gate employees is scheduled for November 21. The company's WARN notice filing on September 23 was one day short of the 60-day notice period required by California's WARN Act, which typically requires 60 days' notice before a mass layoff or plant closure. However, the exact date employees received notice can vary, and legal obligations may differ based on an employer's specific circumstances, including potential exceptions for unforeseen events.