The largest trucking firm in Chattanooga is putting a stop on spending and laying off another five percent of total non-driving employees this month.
Experts are suggesting a shipping slowdown in some industries, which means US Express is currently searching for methods to reduce other costs and sell surplus real estate in order to offset rising prices.
In May, U.S. Xpress Enterprises closed its Chattanooga headquarters, eliminating 70 non-driving positions.
The company posted a loss for the second quarter earlier this month and its stock price fell in response to the worse-than-expected results.
This is making another round of comparable layoffs this month.
Brad Carmony, vice president of communications for U.S. Xpress, said the company is not disclosing the number of employee layoffs involved at the company’s headquarters, where about 1,400 workers are employed.
But to restore profitability, Carmony said U.S. Xpress earlier this year “began a multi-phased restructuring including leadership changes, a reduction in force and a hiring freeze.
“Through this process, U.S. Xpress is evolving into a leaner, more disciplined company,” Carmony said in an emailed message to the Chattanooga Times Free Press.
Eric Fuller, president and CEO of U.S. Xpress, told analysts in early August that the company is looking to lower its fixed costs while continuing to grow its fleet and technology deployment.
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Fuller said: “In terms of the overall market, we’re expecting market demand to continue moderating primarily as inflation continues to pressure consumers,”
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U.S. Xpress reported in its annual report that it had 8,689 employees overall as of the end of 2021, including more than 2,400 office staff and close to 6,000 drivers.
An office building that the business no longer uses was put up for sale earlier this year.