US Xpress has laid off around 70 corporate and IT employees in reaction to slower-than-expected growth in the company’s trucking division.
The trucking firm reported a first-quarter loss of more than $8.9 million on May 5, 2022.
The job cuts at US Xpress are the biggest since the company cut nearly 100 positions five years ago.
Brad Carmony, vice president of communications at US Xpress, said: “In recent months, our truck count and revenue have not grown at the same rate as our headcount.”
He said: “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.”
The layoff totaled 5 percent at the corporate headquarters in Chattanooga and other US Xpress offices.
The redundancies come as the trucking sector battles to deal with global supply chain issues exacerbated by the pandemic and Chinese lockdowns, Russia’s war with Ukraine, and continued labor and supply shortages in other industries.
From its Atlanta headquarters, the company has created a set of machine learning and artificially intelligent algorithms called the Variant Optimizer.
It is intended to reduce operational expenses while increasing driver satisfaction by utilizing “operations specialists” rather than fleet managers.
Source: Transport Topics