Amazon plans to shut down Shakopee center, lay off 680 workers

In a letter to state officials, the company said the closure would be permanent, but did not explain its decision to the state

Reuters file photo

ST. PAUL — Retail giant Amazon told state officials on Monday, Jan. 30, that it will shut down a sort center complex in Shakopee, Minnesota, and lay off 680 employees at the facilities, effective March 31.

In a letter to the Minnesota Department of Employment and Economic Development, the company made it clear the closure would be permanent, but did not explain its decision to the state.

A company spokesperson later told MPR News the workers affected will be offered opportunities at facilities elsewhere in the Twin Cities region and that this move was not about reducing headcounts.

“We’re always evaluating our network to make sure it fits our business needs and to improve the experience for our employees, customers, partners, and drivers,” said Steve Kelly, public relations manager. “As part of that effort, we may close older sites, enhance existing facilities, or open new sites, and we weigh a variety of factors when deciding where to develop future sites or maintain a presence."

This is not the larger facility many think of in Shakopee, known as MSP1. Amazon said the facility that is shutting is a rented space and the lease is expiring.


Amazon said it made the announcement per state and federal laws that require companies to give governments advance notice of large layoffs.

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