Layoffs hit over 14,300 workers tied to freight sectors in US, Canada, Mexico

A massive wave of layoffs, closures and furloughs has hit workers and companies tied to the manufacturing, distribution and freight sectors in the U.S., Canada and Mexico. 

Since Jan. 20, there have been 14,357 job cuts, according to media reports and Worker Adjustment and Retraining Notification (WARN) Act notices.

Food processors and distributors hit hard

Among the companies facing layoffs this month, major food processors and distributors Harvest Sherwood Food Distributors, Cargill Inc., Archer-Daniels-Midland Inc., Foster Farms, and Perdue Farms all reported significant job cuts.

Detroit-based Harvest Sherwood Food Distributors is shutting down all its operations across the U.S. and laying off about 1,500 workers by April 21.

In WARN notices, Harvest Sherwood cited “rising costs and a diminished market for its products” as the reasons for the shutdown.

The company, one of the largest meat and seafood distributors in the country, has facilities in Michigan, Florida and Oregon.

Farm giant Cargill Inc. will close a Springdale, Arkansas, turkey processing plant with 1,100 workers on Aug. 1, the company announced Jan. 28.

Minneapolis-based Cargill has not confirmed why it’s shutting down the Springdale facility but said production is being shifted to processing plants in Missouri and Virginia.

In December, Cargill announced it would be reducing its global workforce by 5% as a long-term strategy “to strengthen Cargill’s impact,” The Associated Press reported.

Grain producer and distributor Archer-Daniels-Midland (ADM) posted its lowest fourth-quarter profit in six years last month and said it would eliminate up to 700 workers to streamline its operations.

Chicago-based ADM has a global workforce of more than 40,000. The company has not specified where it would be conducting layoffs. In the U.S, ADM has locations in 11 states.

Related: Layoffs hit more than 7,100 workers tied to freight industry in US, Canada

Automotive sector sees over 2,000 job cuts

The automotive industry in the U.S. and Mexico saw widespread layoffs in January and February due streamlining operations, weaker sales and a slowing transition to electric vehicles.

In February, electric truck maker Nikola Corp. filed for Chapter 11 bankruptcy after years of struggling financially.

The Phoenix-based manufacturer of zero-emissions trucks was founded in 2014 by Trevor Milton. The founder resigned shortly after and was later convicted of securities fraud and wire fraud in 2022 for misleading investors about Nikola’s technology and operations.

As part of its bankruptcy filing, Nikola Corp. said it plans to lay off over 900 workers in Arizona and California.

Goodyear Tires plans to cut about 850 jobs at a plant in Danville, Virginia, by the end of the year.

The Akron, Ohio-based company said the cuts are part of a plan to repurpose the Danville facility for rubber mixing and aviation tire production.

Bridgestone Tires plans to close its truck and bus radial tire plant in LaVergne, Tennessee, by July 31. The closure will impact 700 workers.

The closure is related to the plant’s age, along with shifting production to its facility in Morrison, Tennessee.

General Motors laid off 800 workers at a plant in Ramos Arizpe, Mexico, due to operational adjustments, the company said.

“With the goal of increasing operational efficiency at General Motors Ramos Arizpe, starting on January 20, the Assembly Plant returned to a two-shift operation,” GM told Mexico Business News.

On Monday, Volkswagen laid off 156 workers from its operation in Puebla, Mexico. The company said the workforce reduction was due to switching to a new parts supplier and streamlining production at its assembly plant.

3PLs and trucking companies also report layoffs

DHL Supply Chain plans to close a facility in Union City, Georgia, and lay off 614 employees, according to a state filing.

The facility is near Hartsfield-Jackson International Airport, and the job reductions will take effect starting April 6. The company did not provide a reason for the closure.

Smart & Final Logistics is cutting 217 workers from a logistics warehouse operation in Riverside, California. The layoffs will be finalized April 21. The company did not provide a reason for the worker reduction.

Parcel carrier UPS is closing facilities in Maryland and Florida, eliminating 146 jobs.

Swiss logistics giant Kuehne + Nagel Inc. is closing two facilities in Illinois and California, resulting in 109 job cuts.

Carriers announcing recent layoffs include SDK Logistics, 10 Roads Express and Together Logistics LLC.

Canada pantyhose maker said tariffs caused furloughs

Montreal-based pantyhose-maker Sheertex is temporarily laying off 40% of its staff partly due to tariffs the U.S. has placed on Canadian goods, the CBC reported.

Sheertex CEO Katherine Homuth said the company does about 85% of its sales in the U.S. and  her business would be hurt by the 25% tariff, as well as the removal of the de minimis exemption.

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