Freight distress persists as logistics layoffs top 1,000, bankruptcies mount

Warehouse and logistics layoffs account for hundreds of jobs

Among the largest announced reductions is DSV Contract Logistics LLC, which plans to eliminate 175 jobs at its Edwardsville, Illinois, facility beginning Dec. 5.

According to an Illinois WARN notice, the permanent layoffs at the company’s Illinois facility are tied to a lost contract.

National Distribution Centers LLC also announced significant workforce reductions at two facilities.

The company plans to close its distribution facility in Perris, California, eliminating 167 jobs effective Jan. 4, 2027. In Groveport, Ohio, the company intends to permanently eliminate another 126 positions between Jan. 5 and Jan. 19.

Combined, the two actions account for 293 announced job cuts.

Other logistics companies announcing reductions include CEVA Supply Chain Inc., which plans to eliminate 120 positions at its Lockbourne, Ohio, facility by June 2027, and Kenco Logistic Services LLC, which is permanently closing a warehouse operation near Myerstown, Pennsylvania.

Kenco’s closure will affect 81 employees, with layoffs beginning March 1 and concluding by June 15.

Worldwide Flight Services Inc., an air cargo handling and ground services provider, filed an Oct. 29 WARN notice covering 59 permanent layoffs at its San Diego facility.

Amazon also announced plans Nov. 9 to close its La Puente fulfillment center in Southern California, affecting 94 employees at the end of January. Some employees may be eligible to transfer to other Amazon locations.

The reductions extend beyond warehouses and distribution centers.

Oshkosh Corp. eliminated approximately 80 salaried positions in its transport segment in late October. The cuts coincided with the specialty vehicle manufacturer’s third-quarter earnings announcement, when it lowered its full-year profit outlook.

S&S Worldwide, a Connecticut-based distributor of crafts and educational supplies, announced 70 layoffs, while S.S. Delivery Systems LLC filed a facility closure notice affecting 49 workers in Rochester, New York.

Freight and logistics layoffs

The following table summarizes the 10 layoff and closure announcements included in this report.

Trucking companies seek bankruptcy protection

The layoffs come as smaller trucking companies and freight-related businesses continue to seek bankruptcy protection.

Several carriers filed for Chapter 7 liquidation, including Winners Trucking Inc. of Dallas, Texas; Bruin Logistics LLC of Cicero, Illinois; and JYM Trucking Inc. of Florida.

Winners Trucking filed its voluntary Chapter 7 petition Oct. 21 in the U.S. Bankruptcy Court for the Northern District of Texas. The case was designated a no-asset proceeding.

Bruin Logistics filed a Chapter 7 petition Nov. 9 in the Northern District of Illinois, also designated as a no-asset case.

JYM Trucking, a carrier listed with one truck and one driver, filed for Chapter 7 protection Oct. 27 in the Middle District of Florida.

Other Chapter 7 filings included RP3 Hauler Inc., an Orlando-based auto transport and interstate freight carrier, and Priority Freight & Logistics Corp., which filed in Pennsylvania.

Chapter 7 generally involves liquidating a company’s nonexempt assets to satisfy creditor claims, while Chapter 11 allows a business to reorganize its debts or pursue other court-supervised restructuring options.

Texas trucking and repair companies pursue restructuring

Several Texas transportation businesses have sought Chapter 11 protection.

X-Total Cattle Transportation LLC, an El Paso-based livestock carrier, filed Nov. 10 in the Western District of Texas.

The company reported liabilities between $500,000 and $1 million, compared with assets of less than $50,000.

Federal transportation records cited in the filing summary show the company previously operated four power units and employed five drivers. Its USDOT registration was listed as inactive as of October.

Tri State Truck Repair LLC, also based in El Paso, filed for Chapter 11 protection Nov. 2, reporting assets and liabilities each between $500,000 and $1 million.

The company provides heavy-duty truck repair and maintenance services along the Interstate 10 corridor.

SW Truck Care LLC, a commercial truck repair and inspection business in Grand Prairie, Texas, filed for Chapter 11 protection Nov. 9. The company reported assets and liabilities each between $1 million and $10 million.

In Florida, KR Transport & Services LLC, an agricultural hauling business, filed for Chapter 11 protection Oct. 29, reporting assets and liabilities between $1 million and $10 million.

Supply chain bankruptcies extend beyond trucking

Financial distress is also affecting companies involved in freight distribution, automotive parts and agricultural supply chains.

Grapeman LLC, a California-based fresh fruit distributor, filed for Chapter 11 protection Oct. 23, reporting liabilities between $10 million and $50 million against assets of $1 million to $10 million.

Getpart LA Inc., an automotive collision parts e-commerce retailer operating under the Fitparts brand, filed for Chapter 11 protection Oct. 26.

The Gardena, California-based company operates a national distribution network supporting automotive parts sales.

Torres Metal Recycling Inc., a Sealy, Texas-based industrial recycling business, also filed for Chapter 11 protection Oct. 23.

An earlier bankruptcy case involving SICC Logistx LLC, a North Carolina-based Amazon Delivery Service Partner, remains relevant to the broader distress picture.

The company filed for Chapter 11 protection Sept. 14 and is seeking to maintain its Amazon Logistics contract while addressing liabilities that include disputed merchant cash advance debt.

Bankruptcy filings: Reporter reference table

Why it matters: The latest wave of layoffs and bankruptcies underscores continued pressure on freight operators, with job losses extending into 2027.