Editor’s note: This story has been updated to reflect the number of layoffs confirmed by the company.
Truck brokerage giant C.H. Robinson Worldwide Inc. laid off approximately 650 employees this week, the company confirmed Thursday. Sources close to the situation originally estimated the number would be closer to 1,000, possibly up to 1,200.
The move comes a week after the Eden Prairie, Minnesota-based company (NASDAQ: CHRW) reported weaker-than-expected, third-quarter results and strongly hinted at impending labor cost reductions to combat the impact of slowing demand and increased costs.
“We got ahead of ourselves in terms of head count,” said Bob Biesterfeld, Robinson’s president and CEO, on a post-earnings call. Robinson employs nearly 17,000 people.
Biesterfeld said he did not forecast truckload demand declining as rapidly as it did, as well as spot market and contract rates deflating considerably.
In a statement Wednesday night, the company said:
“As we said last week in our Q3 earnings, changes in market conditions, coupled with many successful endeavors on our digital roadmap directed at scaling our model to be more efficient, mean we are in a position to reduce our overall cost structure.
“As a result, we’re eliminating some positions at C.H. Robinson. These are not easy decisions, because we recognize the significant contribution of the impacted employees. We have tried to approach this with as much respect and empathy for our former colleagues as possible and are providing transition assistance.”
In late February, Robinson entered into a cooperation agreement with Ancora Holdings Group LLC, an activist investor group. It also named Henry Maier, a former CEO of FedEx Ground, the U.S. ground delivery unit of FedEx Corp., (NYSE: FDX) and Jay Winship, a financial executive, as independent directors.
In addition, Robinson’s board formed a four-member capital allocation and planning committee, which the company said would recommend capital allocation, operations and strategies, including enhanced transparency and disclosures to shareholders. The panel is chaired by Winship and initially includes Scott Anderson, the company’s chairman, as well as Biesterfeld and Maier.
Kay
Thanks to you, Mr. President!!!
Brenda Jean
They’ve lost many carriers when they changed how sales reps are allowed to book loads. They can’t book loads for you if it’s after a 72 hour window. You have to do book it now or wait the 72 hours but then someone will take it for the cheap a$$ rate they have it and will give it back day of pick up. So they hurt themselves and now they are hurting all the sales reps by laying them off right before the holidays… We all know that the CH stands for CHEAP & HEAVY … Maybe if they would pay better to the carriers and owner operators they wouldn’t be in this predicament.
Scott
They are sending jobs to Poland
Mitch
Anyone who didn’t know this recession was coming are completely out of touch with reality. You can’t elect people who are anti fossil fuel and anti American worker and expect to have a vibrant economy.
Erin Chase
Thinking of all who are impacted. I would love to network with anyone in order to find new opportunities available.
You can reach me on LinkedIn or at EChase@CRST.com
Dan Munoz
My company is Hiring. #3PL #Freight #Supplychain
https://tuckerco.com/careers/
Rick james
Oh well they been taken money from us for years. They been doing driver bad so oh well so many little companies they put of business
A fellow trucker
No need for hateful comments C.H. Robinson are people that make mustakes All lives matter we ALL know the recession will hit the trucking industry hard they didn’t see it coming like alot of people, I believe they were making the right decision in the beginning to make lives better and their community by employing more people, unfortunately this recession will hit more in this industry than we want but it’s starting All we can do is pray that God will stabilize the economy 🙏
If you believe on Jesus Christ he will protect you through the storms of life ✝️