U.S. Xpress Enterprises, Inc., one of the country’s biggest trucking companies, announced it is eliminating nearly 100 positions at its Chattanooga, Tennessee headquarters and its repair depot in Tunnel Hill, Georgia.
Ranked as America’s 16th-largest truck carrier company, U.S. Xpress has more than 10,000 employees working in 55 locations across the country. The company said no drivers were part of the layoffs, but that the layoffs are part of a shift in business strategy that will require fewer corporate support staff.
“Today we made the difficult decision to lay off just over 100 people as part of a shift in company focus,” said Danna Bailey, director of communications for U.S. Xpress We simply needed to make sure our resources and people match our strategic direction. We do not have any plans to cut any lines of business.”
Bailey said the company’s human resources department “is offering assistance for anyone who would like help in their transition to the job market.”
Despite U.S. unemployment being below 4.5% and gross domestic product (GDP) picking up steam in the second quarter to 2.6%, some logistics companies continue to struggle.
In addition to U.S. Xpress, San-Francisco-based startup Shyp said it suspending operations in New York, Chicago, and Los Angeles as it looks to achieve profitability at home.
In a company blog, Kevin Gibbon, CEO and founder said, “This decision was not made lightly. It impacts our employees, customers, and partners, and I know it will upset, disappoint, and inconvenience many of you.”
The company did not say how many employees would lose their jobs.
Shyp is an on-demand delivery app that promises a courier will arrive at users’ doorsteps within 20 minutes of a selected time. The company handles picking up, packaging, and shipping items and offers price comparison across different carriers. In addition to individual customers, Shyp has partnerships with eBay Inc (NASDAQ:EBAY) and Shopify Inc (NYSE: SHOP).
This is not the first time Shyp has reduced its workforce in an effort to achieve profitability. In 2016, the company closed operations in Miami, Florida, just a year after launching. It also slashed eight percent of its staff in early 2016.
“U.S. Xpress lays off nearly 100 employees,” WRCB-TV, August 2, 2017.
“About U.S.,” U.S. Xpress Enterprises, last accessed August 3, 2017.
“Shyp Blog,” Shyp, last accessed August 3, 2017.