The freight and logistics sector is undergoing another round of workforce reductions, with several major companies announcing job cuts and facility closures. As market conditions remain challenging, over 1,200 layoffs and six distribution facility closures have been revealed this week alone. This follows last week’s announcement of 2,402 job cuts from industry leaders including Amazon, DHL, and True Value Co.
UPS Scales Back Amid Strategic Overhaul
United Parcel Service (UPS) has confirmed plans to temporarily shut down package processing facilities in Vernon, California, and Denver, Colorado, impacting 849 employees. These closures are part of UPS's broader cost-cutting measures aimed at automating operations and saving $3 billion by 2028.
The layoffs, scheduled to conclude by January 15, mark another step in UPS’s three-year plan to close 200 distribution centers. However, the company has emphasized that the closures are temporary, with automation upgrades planned for these facilities. While UPS has not disclosed how many employees will return once the facilities reopen, it has assured that the sites will remain under its control during the transition.
Advance Auto Parts Shutters Facilities Nationwide
Advance Auto Parts has announced plans to close four distribution centers as part of a restructuring effort, resulting in significant layoffs. Two of these closures are in California, with 171 employees affected in San Bernardino and 66 in Bakersfield. The locations of the other two centers have not yet been disclosed.
This move aligns with the company’s larger strategy, which includes shutting down 500 corporate stores, 200 independently owned locations, and four distribution centers by mid-2025. Advance Auto Parts aims to redirect its focus on core retail improvements, as detailed in its third-quarter earnings report published on November 14.
Great Dane Reduces Workforce Amid Freight Recession
Tractor-trailer manufacturer Great Dane LLC is laying off 151 employees at its Danville, Pennsylvania facility by January 6. The company cited the ongoing freight recession as the primary reason for the workforce reduction.
Great Dane officials expressed hope for recalling affected employees as the market stabilizes, stating, “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.” Despite its efforts to maintain operations, the prolonged downturn has made layoffs unavoidable.
Great Dane, headquartered in Chicago, operates nine manufacturing plants and a parts distribution center across the U.S., employing more than 5,000 workers.
Ryder Transportation Solutions Faces Cutbacks
Ryder Transportation Solutions has announced layoffs of 40 employees at its Dixon, Illinois logistics center, effective December 20. The company, which operates 425 warehouses nationwide and manages a fleet of 230,000 commercial vehicles, did not provide additional comments on the decision.
Industry Adjusts to Economic Pressures
The recent wave of layoffs reflects the freight industry's struggle with a prolonged economic slowdown. From the automation push at UPS to the strategic restructuring by Advance Auto Parts, companies are recalibrating their operations to align with current market demands.
As these adjustments continue, the industry’s workforce faces uncertainty. However, there is cautious optimism that market conditions may improve, providing opportunities for rehiring and recovery in the near future. For now, the focus remains on navigating these challenging times while preparing for a potential rebound.
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