APPLETON, Wisconsin (From news reports) -- Appvion will lay off 62 workers at its distribution center and warehouse, choosing to use third-party contractors instead, according to the state Department of Workforce Development.

The changes at the distribution center will occur by Nov. 5 while the neighboring warehouse will transition by Oct. 15, according to a letter from Appvion officials to the workforce department. The job cuts are not to Appvion's Wisconsin Avenue property.

"The work performed at both facilities will be subcontracted to another company and will no longer be done by Appvion employees," Bob Pagel, director of safety and labor relations for Appvion, wrote in a letter to DWD. Appleton Mayor Tim Hanna was copied on the letter.

The move is similar to what Appvion has done at its nine other distribution locations, said Bill Van Den Brandt, corporate communications manager, to USA TODAY NETWORK-Wisconsin.

"By transitioning staffing and management of our Appleton distribution center to third-party logistics providers, we are able to focus more resources" on the company's manufacturing strengths, reduce fixed costs and access the best management systems, Van Den Brandt wrote by email.

Although the change affects 62 workers, Appvion anticipates a net loss of just 27 jobs at the conclusion of the changes, he added. Nearly half of the employees could be moved into less senior positions through union "bumping rights."

Most of the employees affected are unionized workers, including truck drivers and loaders. In total, there are about 1,000 Appvion employees in the Appleton area.

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