Trucking carrier announces layoffs following first quarter losses
May 16, 2022
U.S. Xpress Enterprises has announced a round of layoffs on the heels of a tough first quarter for the company. In a May 12 statement, the carrier announced it was laying off around 70 members of their corporate and information technology staff.
During a conference call on May 5, the Chattanooga, Tenn.-based trucking company reported a first-quarter loss of more than $8.9 million.
Brad Carmony, vice president of communications with U.S. Xpress, expounded on the reason for the jobs cuts.
“In recent months, our truck count and revenue have not grown at the same rate as our headcount,” Carmony said in a statement. “Unfortunately, this means that we made the decision to let some team members go this week. Many of these reductions in staff are within our technology team, and the remainder were companywide across operations and back-office support.”
According to a company statement, about 5% of staff at the corporate headquarters in Chattanooga and other U.S. Xpress offices were affected by the job cuts. Drivers, mechanics and maintenance workers were not impacted by the recent layoffs. Carmony said the decision to cut jobs was not an easy choice, but layoffs were necessary for the company’s long-term goals.
“No driver, service center or maintenance roles were impacted,” Carmony said in a statement. “While difficult, this decision reflects our need to right size our headcount for our truck count growth and is necessary for the health and long-term success of the business.”
The recent job cuts are the biggest at U.S Xpress since the company laid off about 100 employees five years ago. LL
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