Inside Logistics

XPO Logistics lays off 190 workers

Planned workforce reduction in less-than-truckload business primarily affects administration, management and back office

February 5, 2016
by MM&D Online Staff

GREENWICH, Connecticut—XPO Logistics, Inc eliminated approximately 160 non-sales positions. Most of the reductions were in administrative, management and back office functions, and impacted less than one percent percent of the LTL workforce in North America. Another 30 positions were eliminated in other parts of the company, primarily to address redundancies created by the acquisition.

Collectively, the actions are expected to reduce annual costs by more than $20 million against a targeted operating profit improvement of $170 million to $210 million over two years. To date, approximately $50 million of expected annualized savings have been achieved in the three months since the company acquired Con-way on October 30, 2015.

Tony Brooks, president of LTL for XPO Logistics, said, “Our plan for LTL is very much on track for our near-term and long-term goals. The integration of Con-way has given us the opportunity to engineer a leaner, more results-oriented LTL operation while improving on our industry-leading customer service levels. We plan to double the number of strategic account managers over the next few months. Our focus is on growing LTL by expanding our service capabilities and cross-selling LTL to XPO’s full customer base.”

Brooks continued, “Our new organizational structure is based on clearly delineated P&L responsibilities and customer service accountability at the field level. We’re also optimizing our footprint to increase the efficient use of our capacity, improve transit times in key lanes and make our entire network more productive.”

XPO Logistics has global transportation capacity of approximately 19,000 owned tractors and 46,000 owned trailers, with another 10,000 trucks contracted through independent owner-operators, and access to more than 50,000 independent carriers.