Logistics Company Reduces Workforce

February 1, 2016  by in Business Strategy, Industry   

Most of the eliminated positions were in administrative, management and back office functions. The company said less than 1 percent of the division’s North American workforce was impacted.

Another 30 positions were eliminated in other parts of the company to address redundancies created by the acquisition of the less-than-truckload business from Con-Way. 

Collectively, the layoffs are expected to reduce annual costs by more than $20 million against a targeted operating profit improvement of $170 million to $210 million over two years. To date, about $50 million of expected annualized savings have been achieved in the three months since the company acquired Con-way in October.

"Our plan for LTL is very much on track for our near-term and long-term goals,” said Tony Brooks, president of LTL for XPO Logistics. “The integration of Con-way has given us the opportunity to engineer a leaner, more results-oriented LTL operation while improving on our industry-leading customer service levels. We plan to double the number of strategic account managers over the next few months. Our focus is on growing LTL by expanding our service capabilities and cross-selling LTL to XPO's full customer base."

Brooks said the new organizational structure is based on profit and loss responsibilities and customer service accountability. 

“We're also optimizing our footprint to increase the efficient use of our capacity, improve transit times in key lanes and make our entire network more productive,” he said.