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Bay Area Goodwill Could Soon Shutter More Locations After 2 Closures, 90 Layoffs

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Goodwill San Francisco Bay is closing its training and career center in San Francisco and one of its Oakland retail stores in June. It comes after a tumultuous year for the nonprofit. (Mike Mozart/Flickr)

Goodwill is expected to close more Bay Area stores and donation centers in the coming weeks after moving to permanently shut down two facilities and lay off dozens of employees.

The nonprofit’s training and career center in San Francisco and one of its Oakland retail stores are set to close on June 7, according to a notice that Goodwill San Francisco Bay sent to state employment officials this week. As a result, 18 employees at 750 Post St. in San Francisco and 72 at 1301 30th Ave. in Oakland will be let go.

In a letter sent to the California Employment Development Department, Mona Stone, the organization’s chief legal officer, said the facility closures are a result of changes in business operations.

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“As Goodwill of the San Francisco Bay looks ahead, we have made some adjustments to our existing footprint and structure to better position the organization for future growth plans in the coming years,” Goodwill said in a statement to KQED.

The organization is looking to add larger and more efficient operational spaces, according to the statement. Other Bay Area locations that do not align with the new vision, including an Oakland warehouse, may also face closure soon, the statement continued.

A worker sorts through clothing at Goodwill’s sorting facility in South San Francisco on July 10, 2019. (Sarah Craig/KQED)

It encouraged workers facing termination to apply for roles at other locations. There are about 10 Goodwill locations, including donation centers and career offices, scattered across San Francisco and a few more in the rest of the Bay Area. It is unknown which other locations may close or how many.

The layoffs announced this week will affect positions ranging from management and store supervision to retail and warehouse work and are expected to be permanent, according to the organization’s notice to state employment officials. Other employees will be able to continue in their positions either remotely or at nearby locations with no changes to pay or benefits, it said.

News of the closures follows a tumultuous year for the nonprofit’s Bay Area chapter.

In 2024, Goodwill of the San Francisco Bay entered into an operating partnership with Goodwill of Northern and Central Arizona. The move was essentially an acquisition after Bay Area executives stepped down from their positions in favor of Arizona-based CEO Tim O’Neal, according to an audit published by ProPublica. Goodwill San Francisco, under former CEO William Rogers, also went through a merger in 2021 when it took over Goodwill East Bay.

“Goodwill effectively became a wholly-owned and controlled subsidiary of [Goodwill of Northern and Central Arizona],” the audit reads.

In an interview with the San Francisco Business Times last year, O’Neal said the nonprofit planned to invest $7 million in the Bay Area’s network of retail stores and community service projects. He said they would open locations in suburban areas and shift away from smaller stores as part of the organization’s expansion.

Notice of the impending closures were sent to local workforce agencies, San Francisco Mayor Daniel Lurie, interim Oakland Mayor Kevin Jenkins and supervisors in Alameda and San Francisco counties.

Goodwill employees sort through donations on March 25, 2016. (Andrew Stelzer/KQED)

“Goodwill has been an important workforce development partner, which is why this closure is so disappointing,” said San Francisco Supervisor Danny Sauter, whose district includes the Goodwill career center set to close. “I look forward to working with Goodwill to ensure their career training continues in other ways in San Francisco.”

According to its statement, Goodwill provided 3,600 individuals facing barriers to employment with career training last year. Its services are funded through a large network of used clothing and goods stores, and services are provided at dedicated locations.

Goodwill operates seven career centers in the Bay Area, including the one that’s set to close in June. The others may be consolidated in the near future.

“While we are reducing some operations today, these updates will better position [Goodwill San Francisco Bay] for future growth and continued service to our community in the region,” Goodwill’s statement read.

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