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.