Over 2,400 layoffs hit supply chain-related firms across US

Amazon, DHL, GXO, Kuehne+Nagel, Pepsico and True Value Co. among firms announcing job cuts

True Value Co. is closing seven distribution centers across the country and laying off 1,108 employees. (Photo: Jim Allen/FreightWaves)

Layoffs continue across the freight and logistics industry, with 2,402 job cuts announced by companies in Arizona, California, Georgia, Illinois, Missouri, Ohio and Texas over the past three weeks.

True Value Co.

Hardware wholesaler True Value Co. filed for Chapter 11 bankruptcy Oct. 14 and plans to sell the majority of its assets to competitor Do it Best for $153 million.

The Chicago-based company operates as a member-owned wholesaler cooperative that sells products to hardware sellers, garden centers, industrial distributors and other merchants.

While individual True Value stores are independently owned and will not be a part of the bankruptcy, the company is closing eight regional distribution centers as part of the plan.


The closures will result in 1,108 job cuts. True Value regional distribution centers that have received warn notices include:

  • Chicago, 482 employees.
  • Harvard, Illinois, 243 employees.
  • Corsicana, Texas, 107 employees.
  • Cleveland, 89 employees.
  • Kansas City, Missouri, 69 employees.
  • Kingman, Arizona, 62 employees.
  • Woodland, California, 56 employees.

True Value officials said they hoped the potential sale to Do it Best could keep some or all of the regional distribution centers operating. The transaction with Do it Best could close by the end of the year.

“Our primary goal throughout our strategic evaluation process has been — and remains — preserving jobs and avoiding or postponing facility closures,” True Value’s chief human resources officer, Irma Quintana, wrote in filings in Ohio and Illinois.

GXO Logistics Supply Chain Inc.

Third-party logistics provider GXO is closing a facility and laying off 343 workers in Bloomington, California, as a result of losing a customer.


Company officials did not name the customer in the filing.

The layoffs at the facility will be finalized by Dec. 31, according to a state filing.

GXO (NYSE: GXO) is a global contract logistics provider. The company employs 130,000 workers and operates 970 warehouse locations worldwide.

The Greenwich, Connecticut-headquartered warehouse operator has laid off 902 employees across the country since the beginning of the year.

CJ Logistics America

CJ Logistics America said it is closing three warehouse operations in Dalton, Georgia, that will result in 275 employees being laid off.

Company officials said the layoffs were the result of losing a customer contract.

The layoffs will be finalized by Jan. 31, according to state filings.

Des Plaines, Illinois-headquartered CJ Logistics America is a supply chain services provider. The company is a subsidiary of South Korea-based CJ Group.


DHL Supply Chain

Third-party logistics provider DHL Supply Chain is laying off 163 workers in Tracy, California.

Company officials did not disclose the reason for the layoffs, which will be finalized by Dec. 31, according to a filing with the state.

DHL is also closing Texas facilities in Missouri City and Sugar Land near Houston, and laying off a total of 53 employees. The layoffs will be completed by Jan. 13. The company did not provide a reason for the closures.

FreightWaves has reached out to officials for DHL.

PepsiCo Inc.

PepsiCo closed a bottling plant and logistics warehouse in Chicago and laid off 131 workers on Oct. 28, according to a state filing.

Pepsico said the plant’s closing was related to “physical limitations” at the site, the company said in an email to Food Dive.

Teamsters Local 727 filed a lawsuit against PepsiCo for “unlawful intent to close” on Nov. 4 for shutting down the warehouse operation, according to CBS.

Teamsters Local 727 represents more than 75 employees at the facility. Union officials told CBS the Worker Adjustment and Retraining Notification Act that requires employers with 75 or more full-time employees to provide 60 days advance notice of pending plant closures or mass layoffs.

Reyes Coca-Cola Bottling LLC

Third-party distributor Reyes Coca-Cola Bottling LLC is shuttering a facility and laying off 101 employees in Modesto, California.

The company said it is shifting operations away from Modesto to another location, according to a state filing.

The layoffs include 17 drivers and 15 warehouse workers. The layoffs will be finalized by the end of January.

Reyes Coca-Cola Bottling manufactures and delivers Coca-Cola, Dr Pepper and Monster products to restaurants, sports venues, businesses, health care facilities, schools, convenience stores, supermarkets and more, according to its website.

The company operates 55 facilities in 10 states and employs more than 30,000 employees.

Hunt & Sons LLC

Petroleum distribution company Hunt & Sons is closing facilities and laying off 84 employees across 14 locations in California.

The closure and layoffs include operations in Modesto and Sacramento. The layoffs will affect more than 50 truck drivers and will be finalized around Jan. 1.

The company did not provide a reason for the closures or layoffs in its state filing and did not reply to a request for comment.

Sacramento-based Hunt & Sons operates 13 office and warehouse facilities and 38 commercial cardlock fueling sites, and employs more than 450 employees.

The company operates 90 trucks and employs 87 drivers, according to the Federal Motor Carrier Safety Administration.

Kuehne+Nagel Inc.

Swiss logistics firm Kuehne+Nagel Inc. is laying off 68 workers in Denton, Texas, after losing a contract with telecommunications provider Ericsson, according to a state filing.

Kuehne+Nagel said the job cuts will be finalized by Dec. 13. The positions span a variety of roles in contract logistics and warehouse operations.

Headquartered in Schindellegi, Switzerland, Kuehne+Nagel has over 80,000 employees at 1,300 locations in 100 countries.

Americold Logistics

Americold Logistics is permanently closing a cold storage facility and laying off 58 employees in Pooler, Georgia, just outside of Savannah.

The layoffs will be completed by Dec. 31, according to a state filing.

The company did not provide a reason for the facility’s closure. Americold Logistics did not return a request for comment.

Atlanta-based Americol Logistics (NYSE: COLD) is a cold storage warehouse and supply chain management provider. The company owns and operates global 249 facilities and employs more than 16,000 workers.

Amazon

E-commerce giant Amazon is  laying off 57 employees from a facility in Milpitas, California, the company said in a state filing.

The company will begin laying off employees at the center on Dec. 27.

Officials for Amazon (NASDAQ: AMZN) did not provide a reason for the layoffs.

Trademango Solutions Inc.

Trademango Solutions is closing a facility in Hayward, California, and laying off 14 workers. 

The company did not provide a reason for the closure or the layoffs, which will be completed by Dec. 31.

The layoffs include nine delivery drivers and three delivery helpers.

Vancouver, British Columbia-based TradeMango Solutions has 82 trucks and 60 drivers, according to the FMCSA.

Officials for Trademango did not respond to a request for comment.

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