New layoffs hit U.S. freight companies

Layoffs continue in the freight and logistics sector, with companies announcing 1,277 job cuts and six distribution facility closures across the country.

This is the second major round of layoffs in the industry since last week, when True Value Co., GXO, CJ Logistics America, DHL, PepsiCo, Reyes Coca-Cola Bottling LLC, Hunt & Sons LLC, Kuehne+ Nagel, Americold Logistics, Amazon and Trademango Solutions announced the elimination of 2,402 jobs.

UPS

Shipping giant UPS plans to temporarily close its distribution facilities in California and Colorado, resulting in the layoff of 849 employees.

The closure of package processing facilities is part of the strategic initiatives and cost reduction measures announced in March. UPS said it would close about 200 distribution centers over three years and automate more package processing facilities to save $3 billion by 2028.

UPS (NASDAQ: UPS) is closing a package processing plant in Vernon, California, cutting 445 jobs. In Denver, the company is closing a package processing plant and laying off 404 workers.

Layoffs at both facilities will be finalized by January 15.

According to letters sent to state officials in California and Colorado, UPS will remain at its facilities beyond January 15 and the closure is expected to be temporary. The company said it is adding automation technology to the facilities, but did not say how many employees will be hired once they reopen.

Advanced Auto Parts

Advance Auto Parts plans to close four distribution centers across the country as part of a restructuring initiative.

The company is closing a distribution center operating as Pep Boys in San Bernardino, California. The closure will result in the loss of 171 jobs by February 15.

Advance Auto Parts (NASDAQ: AAP) is also closing a distribution center operating as a Carquest Auto Parts facility in Bakersfield, California. The closure will result in the loss of 66 jobs by the end of February.

Advance Auto Parts has not announced the locations of the two other distribution centers it plans to close. The company operates 13 distribution facilities nationwide.

Advance Auto Parts will close 500 corporate stores, 200 independent locations and four distribution centers by mid-2025, according to a press release.

The company's third quarter earnings report, released on November 14, said the closure of retail outlets and distribution centers is part of a strategic plan to improve the company's performance by focus on fundamental improvements in retail.

Great Dane LLC

Great Dane LLC, a tractor-trailer manufacturer, plans to lay off 151 employees at a Danville, Pa., plant by Jan. 6.

Great Dane officials said the layoffs were a result of the freight transportation downturn.

Due to the prolonged freight transportation recession and the need to adjust our manufacturing capacity to align with current market demands, we are reducing workforces at some factories most affected by economic conditions, officials said from Great Dane to Fox56. We hope to be able to recall employees as quickly as possible, as some economic indicators show signs of the freight transportation recession slowing. However, macroeconomic uncertainty remains high. We have done everything in our power to retain our employees and keep operations running smoothly, but despite our best efforts, we have now reached a point where these actions are necessary.

Headquartered in Chicago, Great Dane operates a parts distribution center and nine manufacturing facilities across the United States. The company has more than 5,000 employees.

Ryder Transportation Solutions

Ryder Transportation Solutions is laying off 40 employees from a logistics center in Dixon, Illinois.

The layoffs will begin Dec. 20, according to a letter sent to state officials.

Ryder (NYSE: R) did not immediately respond to a request for comment.

Ryder operates 425 warehouses in the United States and has a fleet of 230,000 commercial vehicles. The company employs more than 48,000 people.

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