Chegg to close Shepherdsville warehouse by end of year - WDRB 41 Louisville News

Chegg to close Shepherdsville warehouse by end of year

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Chegg employee re-shelving books, December 2014 (WDRB) Chegg employee re-shelving books, December 2014 (WDRB)
By Chris Otts and Courtney Godfrey

LOUISVILLE, Ky. (WDRB) - Chegg, the textbook rental company, will close its Shepherdsville, Ky. warehouse by the end of 2015, executives said Monday on an investor conference call.

The move is related to Chegg's efforts to become a “digital-centric business” and to outsource the logistics of its physical textbook rental business to Ingram Content Group Inc.

Chegg's inventory will be moved from its Shepherdsville warehouse to Ingram's warehouses in the fall and the Shepherdsville warehouse will close by the end of the year, said Andrew Brown, chief financial officer of the Santa Clara, California-based company, on the conference call.

“We expect to move this inventory to Ingram's warehouses this fall, enabling us to close our Kentucky facility by the end of 2015 – one year earlier than planned,” he said.

The closure will cut $6 million to $8 million in costs for Chegg annually, he told investors.

The warehouse hired about 1,500 seasonal employees at $10.50 to $11 per hour in December and January. But its year-round workforce is only 35 employees, Chegg told WDRB in December.

The warehouse was established in 2009, according to a state database. At the time, Chegg said it wanted to store millions of textbooks near UPS' global air hub for quick shipping to students around the country.

The Chegg building on Omega Parkway is 611,000 square feet, according to John Snider of the Bullitt County Economic Development Authority.

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