Knight-Swift Transportation, one of the largest trucking companies in the United States, is facing a tumultuous period marked by disappointing financial results and a bleak outlook for the year ahead.
As a response to these challenges, this week the company has conducted a series of layoffs affecting an undisclosed number of employees at the company, according to various sources.
These developments come on the heels of a second-quarter earnings miss and lowered full-year earnings guidance, which has prompted the company to take cost-cutting measures.
A source close to the company said the layoffs are set to be completed by the end of this week. Laid-off employees came from support departments including human resources, information technology (IT) and other ancillary support roles. IT roles affected included business analysts, scrum masters, quality analysts, product managers and project managers.
Another source within the organization that was affected by the layoffs indicated that roles directly related to the company’s core business functions, such as drivers, driver managers, customer managers and customer-facing roles, were not impacted by the layoffs. Some in the affected departments were even offered roles back into their previous work in core business functions.
FreightWaves reached out to Knight-Swift (NYSE: KNX), but a company spokesperson declined to comment on the story.
Cost-cutting initiatives
These layoffs come in the wake of a challenging second quarter for Knight-Swift Transportation, which resulted in the company missing its Q2 earnings expectations and revising its full-year earnings-per-share guidance downward by 36%. A series of factors have contributed to this downturn, including anticipated weakness in truckload and intermodal rates, lower gains on equipment sales, and losses associated with the recently acquired carrier U.S. Xpress.
To address these financial challenges, the company’s top executives, including CEO David Jackson and CFO Adam Miller, have recently voluntarily reduced their base salaries by 20% for the remainder of the year. This move is part of broader cost-cutting initiatives aimed at improving the company’s financial position.
Despite these temporary salary reductions, the executives received substantial compensation in the past year, totaling more than $11 million, including stock awards and other compensation.
Knight-Swift is focusing on diligent cost controls as it positions itself for future recovery. The layoffs, primarily in support departments, underscore the company’s efforts to streamline operations and reduce costs.
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Not gone quickly enough
May swift knight us express go under harshly. Break up or go under already. The Walmart of trucking and Walmart too should all go under. LoL.
John
They bought US Express for 800 million then lay a bunch of people off without notice. Garbage! And don’t believe the BS about the CEO taking a pay cut. More BS.
Mr. Bill
Need to take a serious look at USXpress structure. There are too many people at the top collecting too much money while the core staff is left without bonuses or raises. The core staff being customer support and driver support are needed to make the business a success. You got families and friends all patting each other on the back and scooting each other up the ladder. Clean it up, Swift.
Harry Potter
It’s really weird to see this….. Swift broke into the top 100 of the fortune 500… Purchased US Express for nearly 1 billion dollars and their stock is a record high….
If something is wrong, is it actually decreased freight activity?!?! Staff didn’t get bonuses or raises this year, but at least the top people collectively got 11,000,000….
Thomas Hardy
Here today, gone tomorrow.
Kristine Rodgers
Night / Swift just bought out US xpress. First time in 5 years I was placed on a force load pushing me out two days after my initial home time. Forced to drive through critical doctor’s appointments that were requested an approved months in advance with documentation. I’m glad and fortunate to have found another job.