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Powell’s City of Books completes new layoffs, citing cost pressures while outlining airport and flagship upgrades

AuthorEditorial Team
Published
January 26, 2026/06:32 PM
Section
Business
Powell’s City of Books completes new layoffs, citing cost pressures while outlining airport and flagship upgrades
Source: Wikimedia Commons / Author: Joe Passe

Staff reductions conclude a year of workforce cuts

Powell’s Books says it has completed another round of layoffs, describing the move as the final step in a series of workforce reductions that has unfolded over the past year. The company has not released an updated headcount for the latest cuts, but has stated that staffing has been reduced by about 20% over that period.

The layoffs affect a workplace that includes union-represented employees as well as management roles. A union representative for International Longshore and Warehouse Union (ILWU) Local 5 said the union is aware of 40 union positions eliminated across the company over the past year, in addition to about 20 management positions. The representative said the union workforce declined from 324 union members when layoffs were first announced in August to 223 after the January reductions, noting that the earlier figure included temporary summer employees.

Company frames layoffs as restructuring for “sustainable” operations

In a statement accompanying the announcement, Powell’s owner Emily Powell said the decisions were difficult and emphasized that the company’s focus is shifting from staffing reductions to execution and strengthening core business fundamentals. Powell’s said it has made operational changes intended to create a more sustainable cost structure while maintaining the customer experience associated with its Portland flagship, Powell’s City of Books.

The latest announcement comes after earlier rounds of layoffs in 2025. In late October 2025, the company acknowledged eliminating 13 roles across departments, with the majority affecting management and business-services positions, and cited operating expenses rising faster than sales as a key pressure on the business.

Investment plans center on PDX, inventory, e-commerce, and City of Books upgrades

Alongside the layoffs, Powell’s outlined where it plans to concentrate resources in the next phase of operations. The company said it intends to reallocate funds toward:

  • an expanded retail presence at Portland International Airport (PDX);
  • enhanced in-store inventory and merchandising;
  • continued growth in e-commerce and digital operations; and
  • functional and aesthetic improvements at the City of Books flagship on West Burnside Street.

Public planning documents previously described a proposed return for Powell’s to PDX with a lease for a roughly 1,940-square-foot retail space in the airport’s South Hall area, with a contract term beginning in January 2026.

Union response highlights recall rights and uncertainty for remaining staff

ILWU Local 5 criticized the decision to lay off union workers and said the reductions have created anxiety among employees. The union said it is working to ensure that layoffs are conducted under the terms of the union contract, including provisions that may allow many affected workers to be recalled if staffing increases in the future.

The union said it wants any planned investments in operational areas to include recalling laid-off workers where possible, citing the value of retained expertise.

Powell’s has indicated that, with the latest round completed, it is moving into a period focused on operational delivery and business performance rather than additional staffing changes.

Powell’s City of Books completes new layoffs, citing cost pressures while outlining airport and flagship upgrades