California Amazon delivery contractor shutting down, 106 workers to lose jobs

A California delivery contractor is shutting down its South Gate operation, putting 106 workers out of a job as a state filing shows just 59 calendar days between the notice date and the workers’ scheduled final day.

Capstone Delivery Inc. notified California’s Employment Development Department that its operation at 9350 Rayo Avenue will close Nov. 21.

The company’s WARN notice is dated Sept. 23.

That puts the filing one day short of the 60 days described under California’s WARN Act. Counting back 60 days from Nov. 21 lands on Sept. 22.

The dates alone do not establish that Capstone violated the law. The date recorded on a filing is not necessarily the date employees received notice, coverage can vary based on an employer’s circumstances, and California law provides an exception for a physical calamity or an act of war.

But the closure itself is clear. Capstone classified the action as a permanent closure rather than a relocation, meaning the South Gate operation is slated to shut down completely.

The 106 affected positions include 94 Delivery Associates, six Helpers and six Managers.

Capstone has operated from the South Gate location for roughly six years, beginning operations there in 2020. The company provides delivery services throughout Greater Los Angeles as an Amazon Delivery Service Partner, using Amazon branded vehicles and uniforms.

The shutdown comes amid a broader wave of cuts involving delivery contractors, logistics companies and other businesses in the freight economy. A Freight Distress Report cited reductions or closures at 15 companies across nine states, affecting about 1,850 workers.

Capstone says it is owned and operated by Katia Daher Anenberg, who immigrated from Lebanon at 19 and went to work at a Los Angeles mall to support herself and her family. She later enrolled at Santa Monica College before transferring to UC Berkeley, where she earned a Bachelor of Science in Sustainable Development.

For Capstone’s South Gate workforce, however, the next date on the calendar is the one that matters most.

Nov. 21 is currently scheduled to be the final day of work for all 106 positions.

Download The California Post App, follow us on social, and subscribe to our newsletters