Companies are required by federal law to notify the government of mass layoffs at least 60 days in advance.
The layoffs will impact positions in human resources, accounts payable, and billing. These jobs will be transferred to third-party providers of business and technology services, UNFI spokesman Charles Davis told the Globe on Monday.
“We expect this change will allow us to serve our partners more efficiently and effectively over time,” said Davis.
After the layoffs are complete in summer 2025, “UNFI expects to cease operations at Lincoln,” wrote Farhana Mishra, UNFI’s senior director of human resources, wrote in the company’s notice to the state.
Earlier this fall, Rhode Island-based associates were informed of the company’s plans to relocate UNFI’s corporate headquarters on Iron Horse Way to a new office space in downtown Providence at 15 Park Row West during the summer of 2025, Davis told the Globe. It’s unclear how many employees will actually report to the new office.
The new office space, which is also known as the Gateway Building, or the American Express Building, is owned by NR NC Providence LLC. The 200,000-square foot office building has a 150-car garage and was completed in 1990.
“Although our corporate support functions remain fully remote, all associates assigned to our Providence and Lincoln offices, as well as those who travel to the area, will have access to the new space for meetings and collaboration,” said Davis.
UNFI, one of Rhode Island’s largest public companies, is a distributor of all-natural and conventional foods, and was founded in 1996 by the merger of Mountain People’s Warehouse and Cornucopia Natural Foods — two area distributors. Since its inception, other regional distributors have merged with UNFI, making it one of the largest distributor of natural products.
The company operates more than 50 distribution centers across the nation, and generates approximately $31 billion in annual revenue.
Since 2017, some of the company’s operations have been from a Lincoln office building that was once the former headquarters of pen company A.T. Cross on Albion Road. When UNFI signed its lease, executives promised to hire up to 150 people dedicated to the Lincoln office. When UNFI sought tax credits, Rhode Island Commerce Corporation agreed to award the company $1.9 million if it fulfilled those jobs. UNFI received more than $1.7 million of those credits to date, according to Commerce spokesman Matthew Touchette. The new employees were expected to earn a median annual salary of $33,500, ranging from $33,500 to $85,000.
UNFI is the latest corporation in Rhode Island to flirt with consolidation, job cuts, and — in other cases — looked to completely relocate its offices. In October, CVS cut more than 630 jobs that report to its headquarters in Woonsocket. Days later, its CEO was fired.
Hasbro Inc., the toymaker that was founded in Rhode Island 100 years ago, is laying off dozens of people over the next several weeks as it mulls a potential relocation to Boston.
“UNFI has informed us of their commitment to remain in Rhode Island, and as a large employer in our state, we are pleased that they have made this decision and will continue to invest in our people and our communities,” said Touchette.
The news comes as the grocery wholesaler is facing a class-action lawsuit.
Aaron Katz Law LLC and Wagstaff & Cartmell LLP announced in early November that it filed a suit on behalf of Martha’s Vineyard-based food company NYSM Organics LLC, along with other suppliers, that accused UNFI of engaging in deceptive trade practices and breaching its contract.
The complaint, which was filed in Rhode Island Superior Court, claims UNFI squeezes suppliers by imposing “opaque and constant deductions” in order to compensate for low margins.
“UNFI knows that even if this practice decimates startups and other small natural food companies, there will always be new businesses entering the market that need UNFI way more than UNFI needs them,” the complaint said.
The complaint alleges that UNFI placed an undue financial strain on small natural food brands. NYSM also accused UNFI of violating the Massachusetts Consumer Protection Act.
In a previous statement, Davis said UNFI is reviewing the details of the complaint, and values “all our supplier relationships.”
The proposed class action, filed by firm Apapol Weiss, is looking to represent all food suppliers that have been affected by the grocery giant’s invoicing practices.
A hearing is scheduled before Judge Brian Stern on Monday.
Follow Alexa Gagosz on Bluesky: @alexagagosz.bsky.social
Alexa Gagosz can be reached at [email protected]. Follow her @alexagagosz and on Instagram @AlexaGagosz.
link
