Hands of businessman trying to cut off troublesome human relationships with scissors


If the ongoing staffing shortage wasn't already a significant challenge impacting commercial cleaning companies, layoffs on the horizon are also impacting operational stability. As organizations attempt to balance operational demands with limited labor, they may overhaul their business, which can result in resiliency or insolvency. Such is the case for Essendant, a major U.S. distributor of jan/san products, food service supplies, and technology, which recently announced major layoffs.

Despite being a recipient of two major business proposals in 2018, Essendant was acquired by Staples, Inc., an affiliate of Sycamore Partners, in 2019. At present, the company faces liquidation risks, resulting in an estimated 1,278 job cuts. These layoffs affect employees across six states—Illinois, Georgia, Pennsylvania, Texas, California, and Arizona—with more than half of the cuts transpiring in Essendant's two Illinois-based facilities.

The company had restructured its distribution network in 2025 to carve out a "new way forward." This new missive prioritized select offerings—jan/san, foodservice, and technology products—while also reducing the company's distribution footprint. Essendant also aimed to enhance its distribution capabilities by working alongside Hub Group to streamline deliveries, as well as partnering with Pepper to integrate artificial intelligence (AI) to promote product content.

Now, Essendant is pursuing alternatives to avoid liquidation. Other preceding commercial cleaning companies, such as Jon-Don and Bane-Clene, have faced this unstable supply market and failed. To emerge successfully from market disruptions and grow alongside the ever-evolving industry, professional cleaning organizations and vendors can integrate technology as an operational standard, align with sustainability trends, and improve employee engagement through comprehensive pay, benefits, and training programs.