United Parcel Service intends to close a Baltimore County distribution warehouse and lay off up to 540 workers, according to a state database.

UPS notified the Maryland Department of Labor on June 20 that it is closing its facility at 3901 Vero Road on Aug. 23. The 182,000-square-foot facility is located off of Interstate 95 and just southwest of Baltimore city limits.

In a statement, UPS said it is closing the facility to modernize it. The modernization is part of a broader company strategy to increase automation through robotics and artificial intelligence. UPS said the facility is expected to reopen in 2025, but a spokeswoman declined to say how many people will work there.

“Our employees are extremely important to us, and we are working to place as many employees as possible in other positions at our onsite temporary hub or in nearby facilities,” the company said in a statement. “We remain committed to working with them throughout this transition and providing support. This temporary closure won’t impact customer service and we have plans in place to continue servicing the Baltimore community.”

The company laid off 118 people at the same facility in March, according to the state database.

Unionized UPS employees got significant pay raises last year following contract negotiations, according to The New York Times, but in January CEO Carol Tomé said the company planned to lay off about 12,000 employees this year.

A previous version of this story incorrectly stated the number of people that will be laid off. UPS has notified 540 employees of the impending closure.