GXO Logistics filed a WARN notice with the state of Mississippi on January 6, 2026, informing workers it would close its Stateline Road warehouse in Southaven and permanently lay off all 220 employees by January 31. The closure was triggered by the sale of the facility to MZX Tech LLC in December 2025. MZX Tech is a shell entity tied to xAI, Elon Musk's artificial intelligence company. The 220 workers received less than 60 days notice before their termination date, a potential violation of the federal WARN Act, which requires 60 days notice for mass layoffs at covered facilities.
Law firm Strauss Borrelli launched an investigation into the potential WARN Act violation on behalf of affected workers. Under the WARN Act, employees who did not receive proper notice may be entitled to up to 60 days of back pay and benefits. The investigation was ongoing as of early April 2026.
The Southaven site is now being converted into xAI's third Mid-South data center. Mississippi Governor Tate Reeves described the investment as the largest private-sector investment in Mississippi state history. The facility that displaced 220 logistics workers is being repurposed to house the AI infrastructure that is broadly reshaping the labor market.
This is a concrete, documented case of AI infrastructure expansion directly displacing warehouse workers. GXO is a $10 billion contract logistics company operating 970+ warehouses for customers like Apple, Nike, and Nestlé. The 220 workers affected represent less than 0.2% of GXO's global workforce of 154,000, which makes this a small footnote for the company but a complete job loss for everyone in that building. The pattern -- xAI acquires land or facilities at speed, workers get short notice or no notice, and data center construction begins -- is one that will likely repeat as the AI buildout accelerates through 2026 and beyond.