Q1 ends with thousands more freight layoffs

Freight-related layoffs across North America continue to mount, with companies citing economic uncertainty, tariffs, declining demand and rising production costs as reasons for the job cuts.

There have been 5,608 job cuts over the past several weeks, according to media reports and Worker Adjustment and Retraining Notification (WARN) Act notices.

Since Jan. 1, almost 23,000 freight-related job cuts have been announced, impacting workers in autos, food distribution, manufacturing, transportation and logistics.

Online retailers hit hard

Chewy Inc., an online pet supply retailer, plans to cut 674 jobs at its fulfillment center in Dallas, starting May 10.

The company did not specify a reason for the layoffs in state filings. It opened a 663,000-square-foot fulfillment center in Dallas in 2017.

Chewy is dually headquartered in Plantation, Florida, and Boston. The company has over 18,000 employees.

In addition to Dallas, Chewy has fulfillment centers in Phoenix; Louisville, Kentucky; and Pittston, Pennsylvania. 

Online meal kit provider HelloFresh announced it is closing a distribution center in Grand Prairie, Texas, and eliminating 273 jobs.

Staffing agency ManpowerGroup US Inc., a contractor for HelloFresh, announced earlier this year it was closing a distribution facility March 28 in Irving, Texas, and laying off 173 workers. 

Berlin-based HelloFresh has seen reduced customer demand for its products over the past year. HelloFresh operates in 16 countries and has over 21,000 employees.

ManpowerGroup US Inc. recently announced it was closing three distribution facilities in Illinois that it operated for Factor, an online meal kit provider and subsidiary of HelloFresh.

Manufacturing companies lose over 1,200 jobs

The manufacturing industry in the U.S., Canada and Mexico saw widespread layoffs including auto parts suppliers, farm equipment and railcar manufacturers, and a semiconductor chip maker.

Milgard Manufacturing announced it was closing its window manufacturing plant in Ventura, California, and laying off 397 workers.

Officials for Milgard told the Ventura County Star they are shifting production from the California plant to a facility in Phoenix.

Tacoma, Washington-based Milgard Manufacturing has 1,400 employees and facilities in Sacramento and Temecula, California, and Prescott Valley, Arizona.

Trinity Rail has laid off about 300 workers from a railcar factory in Sabinas, Mexico, according to media outlets in Mexico.

Trinity Rail told Mexican authorities it will temporarily lay off 15% of its Sabinas workforce while the company adjusts to slower demand in the market.

Trinity Rail, based in Dallas, is part of Trinity Industries, a provider of rail transportation products and services in North America.

In addition to its factory in Sabinas, Trinity Rail operates a factory in Monclova, Mexico.

Sabinas is about 79 miles from Eagle Pass, Texas, the primary border crossing Trinity uses for railcar deliveries from its manufacturing facilities in Mexico, according to a news release.

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

Winnipeg, Canada-based Eascan Automation Inc. recently laid off about 23 employees, as demand for its products is slowing amid uncertainty about U.S. tariffs, company officials said.

Jason Andres, general manager of Eascan Automation Inc., said there has been a slowdown that began around the time Donald Trump was reelected president.

The company, which provides custom-built machines to manufacturers, has lost $3 million to $4 million in orders, Andres said.

“A lot of companies are saying, ‘OK, we don’t need a robot this year. We can wait another year,’” Andres told CBC.

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

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