Agreement at Tennessee distribution center will trigger layoffs

Pharmaceutical giant Pfizer will outsource operations at its distribution facility near Knoxville, Tenn., to DHL Exel Supply Chain in a logistics restructuring that will include laying off about 186 workers at the site, according to local reports.

Pfizer said the action at the Vonore, Tenn., distribution center is part of a larger overhaul of supply chain operations that will have the contract logistics division of Deutsche Post DHL manage more of the business.

"The restructuring of our U.S. logistics network is critical to our efforts to remain competitive in the future so that we can meet customer needs," Philip H. Rose, a spokesman for logistics and supply operations in the Americas at Pfizer Global Manufacturing, told the Knoxville News-Sentinel.

DHL Exel is already a major provider for Pfizer in other countries.

Pfizer said employees at the Vonore site would be given a chance to apply for positions with DHL Exel. Some distribution from the facility will switch to Pfizer's main U.S. logistics center in Memphis, Tenn.