Mass layoffs from freight-related jobs continue across US, Germany
Another round of layoffs, closures and furloughs has hit workers and companies tied to the freight industry in the U.S. and Germany. The post Mass layoffs from freight-related jobs continue across US, Germany appeared first on FreightWaves.
Mass layoffs continue across freight-related companies in the U.S. and Germany.
More than 3,500 job cuts have been announced since April 30, according to media reports and Worker Adjustment and Retraining Notification (WARN) Act notices.
Since Jan. 1, more than 30,000 freight-related layoffs have been announced, impacting workers in food production and distribution, manufacturing, transportation, warehousing, and logistics.
Manufacturing, food production industries hit hard
Among the companies facing layoffs this month, manufacturers and food producers announced the most reductions.
Steel maker Cleveland-Cliffs recently announced it will lay off about 950 workers as it idles two Pennsylvania plants, along with a factory in Illinois. The company cited weak demand as one of the main reasons for the decision.
Atlanta-based Smurfit Westrock said it is closing four factories and laying off a total of 650 workers. The packaging manufacturer is closing plants in Texas and Minnesota, as well as two in Germany.
Georgia-Pacific Corp. is permanently closing its plywood mill in Emporia, Virginia, and laying off 554 employees. The shutdown is due to a decline in plywood demand caused by a slower housing market, company officials said in a news release.
Other manufacturers announcing plant closures include Elkay Plumbing Products Co. in Savanna, Illinois, affecting 135 workers; and plastics maker Berry Global Inc., which is closing a plant in Lannett, Alabama, and laying off 112 people.
Food production and distribution firm Weinstein Industries LLC and its sister company Midwest Perishable Industries are closing two meat processing centers, as well as its transportation and warehousing arm, PDS Industries LLC. The closures will result in 115 layoffs.
Amsted Rail Co. Inc., which makes railcar components, said it is laying off 74 workers from a factory in Granite, Illinois. The company cited a “business slowdown” in a state filing as its reason for the workforce reduction.
3PLs and distribution providers also report layoffs
Rite Aid said it is closing distribution centers in Aberdeen, Maryland, and Des Moines, Washington, resulting in 494 layoffs.
On May 5, Rite Aid announced it was filing for Chapter 11 bankruptcy and plans to either sell or close its 1,240 stores and facilities across 15 states.
Berger Logistics said it is closing its supply chain operations in Phoenix and laying off 121 workers by June 4. The transportation, forwarding and logistics services firm, which is based in Austria, did not provide a reason for the facilities closure.
Logistics and warehouse provider Cardinal Logistics Management Corp. said it is laying off 43 warehouse workers by June 13 from a facility in Naperville, Illinois, after losing a contract.
Northern Air Cargo LLC said it is closing its operations in Miami and laying off 30 workers by July 13.
Additionally, up to 40 pilots who are based out of Miami International Airport but do not reside in
Florida will be furloughed, Northern Air Cargo officials said in a WARN notice filing. The company did not provide a reason for the facility’s closure or furloughs.
Company City Type Reason Layoff date Number of layoffs Cleveland-Cliffs Inc. Riverdale, Illinois; Conshohocken and Steelton, Pennsylvania Steel mills Insufficient demand June 30 950 Smurfit Westrock Forney, Texas; St. Paul, Minnesota; two factories in Germany Packaging manufacturer Widespread staff and facility reduction June 30 650 Georgia Pacific LLC Emporia, Virginia Plywood mill Slow home sales July 1 554 Rite Aid Aberdeen, Maryland; Des Moines, Washington Drugstore/retail chain Chapter 11 bankruptcy, closing two distribution centers June 4 494 Elkay Plumbing Products Co. Savanna, Illinois Manufactures faucets, bottle filling stations, drinking fountains Closing plant December 31 135 Berger Logistics Phoenix Logistics and storage solution provider Closing facility June 4 121 Berry Global Inc. Lanett, Alabama Plastics manufacturer Closing plant July 1 112 PDS Industries LLC, Midwest Perishable Industries, Weinstein Industries, LLC Forest Park, Illinois; Madison, Wisconsin Meat processor and its transportation company Closing two meat processing centers and its transportation company May 31 115 Stahls’ Decorating Fulfillment Center, Transfer Express Inc. Chandler, Arizona Garment manufacturer, materials and equipment supplier Closing two facilities July 3 86 Amsted Rail Co. Granite City, Illinois Manufactures components for rail cars Business slowdown June 26 74 United Facilities Inc. Galesburg, Illinois Logistics and warehouse provider Loss of contract June 16 62 Saddle Creel Logistics Richmond, Virginia Warehousing, order fulfillment and transportation solutions Unspecified July 31 54 Trigo Group Austin, Texas Provides staffing solutions for the automotive, aerospace, transport industries Tesla workforce reduction at Austin Gigafactory May 7 50 Cardinal Logistics Management Corp. Naperville, Illinois Third-party logistics provider Loss of contract June 13 43 TH Foods Inc. Elgin, Illinois Snack food manufacturer Unspecified June 30 33 Northern Air Cargo Miami Air cargo carrier Unspecified July 13 30
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