Layoffs continue across the freight and logistics industry, with companies announcing 1,277 job reductions and six distribution facility closures across the country.
It 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 they were eliminating 2,402 jobs.
UPS
Shipping giant UPS plans to temporarily close distribution facilities in California and Colorado, resulting in 849 employees being laid off.
The closure of the package processing facilities are part of strategic initiatives and cost-cutting measures announced in March. UPS said it will 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 facility in Vernon, California, and eliminating 445 jobs. In Denver, the company is closing a package processing facility and laying off 404 workers.
The layoffs at both facilities will be finalized by Jan. 15.
According to letters sent to state officials in California and Colorado, UPS will remain in the facilities beyond Jan. 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.
Advance 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 under the Pep Boys name in San Bernardino, California. The closure will result in the loss of 171 jobs by Feb. 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 eliminate 66 jobs by the end of February.
Advance Auto Parts has not announced the location of the other two distribution centers it plans to close. The company operates 13 distribution facilities nationwide.
Advance Auto Parts will be closing 500 corporate stores, 200 independently owned locations and four distribution centers by mid-2025, according to a news release.
The company’s third-quarter earnings report, published Nov. 14, said closing the retail locations and distribution centers is part of “a strategic plan to improve business performance with a focus on core retail improvements.”
Great Dane LLC
Great Dane LLC, a tractor-trailer manufacturer, intends to lay off 151 employees from a facility in Danville, Pennsylvania, by Jan. 6.
Officials for Great Dane said the layoffs stemmed from the freight recession.
“As a result of the prolonged freight recession and the need to adjust our manufacturing capacity to align with current market demands, we are cutting back on employees in certain plants most impacted by the economic conditions,” Great Dane officials told Fox56. “We hope to be able to recall employees as soon as possible as some economic indicators show signs of the freight recession slowing. However, macroeconomic uncertainty remains high. We have done everything within our power to retain our employees and keep operations running smoothly, but despite our best efforts, we’ve now reached a point where these actions are necessary.”
Headquartered in Chicago, Great Dane operates a parts distribution center and nine manufacturing plants throughout the U.S. 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 across the U.S. and has a fleet of 230,000 commercial vehicles. The company employs more than 48,000 people.