Widespread Layoffs and Closures Rock U.S. Logistics Sector - Sobel Network Shipping Co., Inc.

Widespread Layoffs and Closures Rock U.S. Logistics Sector

The logistics and freight sector is facing a wave of layoffs and closures, impacting firms in Florida, Georgia, Illinois, Michigan, and Texas over the last fortnight. Notably, Universal Logistics, headquartered in Warren, Michigan, is cutting 677 jobs across its Detroit subsidiaries, Logistics Insights Corp. and Universal Dedicated of Detroit, a logistics center for auto parts. The layoffs include 230 truck drivers, 164 warehouse staff, 212 forklift operators, 26 dock workers, and 45 clerical staff, according to state filings. Universal Logistics, a major North American logistics provider, cited no specific reasons for the downsizing in its state filings.

In another significant development, Swissport Cargo Services is laying off 235 employees in Atlanta following the loss of an Amazon contract. This follows a similar reduction of 378 positions at Newark Liberty International Airport. Despite these cuts, Amazon asserts that service changes at Atlanta’s Hartsfield International Airport won’t affect local deliveries and is coordinating with new vendors to potentially rehire affected staff.

Elsewhere, The Kroger Co. announced the closure of delivery hubs in San Antonio, Austin, and Miami, part of its Kroger Fulfillment Network. This move will eliminate over 230 jobs by the end of May despite efforts to salvage the operations.

Additionally, RXO Logistics has declared 114 layoffs at a Warren, Michigan facility due to a terminated customer contract, with the job cuts set to finalize by the end of May. Meanwhile, Nosco Inc. plans to shutter its Carrollton, Texas facility, affecting 51 positions due to operational relocation to Wisconsin, with a closure scheduled for October.

Lastly, Ryder Integrated Logistics will lay off 29 employees by the end of April at an Illinois facility, attributing the cuts to a lost customer contract. This string of layoffs and closures underscores a period of significant adjustment within the logistics and trucking industry.