GXO Logistics is laying off more than 250 workers following the departure of a major client.

The Connecticut-based freight forwarder plans to let go of 206 employees at its Lancaster warehouse and another 56 from its Dallas facility, according to a notice filed with the Texas Workforce Commission last week.

The filing pointed to a decision by PepsiCo Inc. to end its contract with GXO as the reason for the layoffs, according to Freight Waves. The majority of those employees will be offered jobs with Ryder, PepsiCo's new contractor, according a spokesperson from the city of Lancaster. PepsiCo's operations will continue at the facility without interruption.

The remaining employees will move to existing GXO facilities in the Dallas area, a spokesperson with the company told Bisnow. The company also has warehouses in McKinney and Carrollton.

The move to scale back Dallas operations comes as GXO Logistics plans to hire 4,000 workers across the U.S. ahead of the holiday season. The hiring initiative aims to recruit more than 22,000 people worldwide, according to Transport Topics.

GXO Logistics has more than 900 warehouses comprising about 200M SF, per its website. The company reported close to $8B in revenue in 2021.

CORRECTION, OCT. 24, 10:14 A.M. CT: This story and headline have been updated to include more information about the future of PepsiCo.'s operations at the affected warehouses.