Chicago-based freight brokerage Coyote Logistics laid off an unspecified number of workers Friday morning, the company confirmed to FreightWaves.
“We’re reducing the size of our staff, primarily within corporate services, to improve efficiency and better meet evolving business needs,” a Coyote spokesperson told FreightWaves. “Our people are extremely important to us. These changes are difficult but necessary to make our company more agile and better positioned for the future.”
According to a screenshot of an internal memo viewed by FreightWaves, Coyote is restructuring “to set the business up for long-term stability.” Laid-off individuals will receive a “comprehensive” severance package and outplacement services.
According to LinkedIn data, Coyote’s total head count is down 7% over the past two years and down 2% over the past six months. Transport Topics listed Coyote as the No. 3 freight brokerage firm by revenue in 2023, raking in an estimated $5.2 billion during the most recent 12-month period. C.H. Robinson Worldwide was No. 1 and Total Quality Logistics was No. 2.
Coyote laid off about 200 workers earlier this year, FreightWaves reported. UPS acquired Coyote, founded in 2006, for $1.8 billion in 2015.
The freight brokerage industry has struggled in the past year amid a larger downturn in America’s $800 billion trucking industry. Companies like Flexport, C.H. Robinson and Convoy have all announced large layoffs in the past year.
One reason for the mega-layoffs among freight brokerages is that these companies hired en masse during the hot trucking market immediately following the coronavirus shutdowns. In the summer of 2022, this bull market crashed — and freight intermediaries have had to cull staff.
Do you have more information on layoffs in the freight industry? Email rpremack@freightwaves.com to share your story.
T Broker
Coyote will never go broke! They are a well oiled machine, generating billions of dollars a year, supported by a global Goliath, UPS!
Without brokers, owner operators will suffer. Unless you have a well run trucking company with multiple trucks, and a diversified business, and client base, you need a broker.
The market for truck demand vs freight is in constant flex of change.
If you hate brokers you aren’t doing a very good job on building a relationship. Brokers understand the flux in seasons, and economy’s. A good broker keeps relationships with carriers that stick with the fair market value and through those changes. If you are chasing money you will never win. Brokers always have the upper hand, because they have multiple recorded you “truckers” don’t have at their disposal.
Tom pesavento
Couldn’t be happier to see this crooked company
Start to hurt after taking advantage of truckers
For years. My hope is that they go broke along with all the other brokers!! The old saying. “ use a broker….. go broker”. Time for truckers to get the rates they are entitled to!!!
Tomas
Por eso es que no hay un pago decente por las cargas, 5.2 mil millones por ser puro intermediario. Coyote siempre ha pagado mal las cargas. Tienen muy buena plataforma pero pagan muy mal. Ahora entiendo porque.
Truck Dude
Everyone’s been holding on hoping for the “turn” to happen. But, in simple economic terms, failures and restructuring have to happen at all levels to restore the natural balance. This process rewards the efficient players and punishes those players who can’t read (or don’t respect) a P&L statement.
Things WILL get better. They always do.
Jason Ellingson
They handle construction equipment along with other things but makes one go hmmm. Ports are stacked with equipment.