Approximately 65 employees for Pittsburgh-based Elite Transit Solutions were laid off via Microsoft Teams on Friday. This is the second round of job cuts the freight brokerage has experienced over the past month; about 20 employees were let go on Oct. 20 because of the “current economic situation,” according to sources familiar with the layoffs.
One former employee who was fired on Friday’s call told FreightWaves that Elite Transit Solutions’ CEO Michael D. Johnson didn’t allow workers to submit questions using the chat function and muted their microphones so they weren’t able to ask questions. After the call ended, their computer access was cut.
“We all had questions about when we would get paid for working these last two weeks and if we would get paid for our vacation time we had accrued,” the ex-employee, who asked to remain anonymous for fear of retaliation, told FreightWaves. “We were told to email human resources if we had any questions, but our [vice president] of HR left a day before we found out our jobs were being eliminated. Who is left to respond to our emails?”
Melissa Bucci, former vice president of people and culture at Elite Transit Solutions, confirmed the layoffs via LinkedIn on Friday, stating that she was sorry she didn’t “have an opportunity to say goodbye.”
At its peak, the company had around 140 workers, another source familiar with the layoffs at Elite Transit Solutions told FreightWaves, but is down to around 10 people, including Johnson.
Headquartered in Pittsburgh, Elite Transit also has offices in North Carolina, Chicago and Arizona.
The company hasn’t announced it is ceasing operations and is in “talks with another freight brokerage about a possible merger,” according to multiple sources.
“At this point, we aren’t sure what is true and what is not, but the writing has been on the walls for months that Elite hasn’t been doing well and is struggling to secure financing and pay carriers,” the source said.
While Johnson, who founded the logistics company in 2013, initially agreed to speak with FreightWaves about the ongoing financial situation at Elite Transit Solutions, he later declined to comment.
Some carriers haven’t been paid since May
One former employee said he became aware of Elite Transit Solutions’ shaky financial situation soon after he was hired. He said nearly 80% of the inbound calls were from trucking companies that hadn’t been paid for loads they hauled for the brokerage since May or June. They were instructed to transfer the calls to the billing department, which went to voicemail, but claimed that no one answered the phones.
“We were cut off by almost every factoring company you can think of,” the ex-Elite Transit employee told FreightWaves. “It got so bad that the factoring companies were taking money back from the carriers because the contract was between the factoring company and the carrier, not with Elite.”
“We heard from carriers that were forced to close their trucking companies, including one that had to sell his business and his home, because we hadn’t paid him,” the source said. “We received an email from the wife of a carrier owner whose husband attempted suicide and blamed Elite for not paying him.”
Carriers have been posting warnings about payment issues with Elite Transit Solutions since May.
Elite Transit Solutions also urged independent trucking companies to use its “preferred factoring partner,” Connect Capital LLC, headquartered in Miami, writing on its website that “in most cases, Elite drivers get paid in less than 24 hours.”
The business address for Connect Capital is listed as a townhome which was purchased by Johnson for nearly $2.2 million in March 2022. Johnson, who is listed as the only authorized member for Connect Capital. The Florida secretary of state’s office filed to have Connect Capital administratively dissolved for failing to file an annual report in September.
“Why did they continue to hire people knowing they were on shaky ground,” the source said. “These recent layoffs have put the livelihoods of several people and their families in jeopardy.”
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Chris Ross
Don’t worry Andrea. Your secret is safe with us.
Chip Skylark
That’s what happens when you have a toxic company culture and an arrogant, egotistical CEO and VP running a company. I’m glad the was able to afford a $2 million condo while he was exploiting carriers and employees tho, shows who he really is. He would reluctantly give out a $1k raise and say you should be grateful you got anything. Oh and don’t even mention all the OT he forced you to do unpaid. He shouldn’t be allowed near another brokerage. LFG to the moon tho right…. or more like to bankruptcy.
Will
At least they had a VP of people and culture
Li li
Very sketchy the CEO owns a factoring company they’re pushing carriers to use. But it proves to show that the frat life culture/mentality is toxic and not sustainable.
Juan medina
Nice they own me money and they even reply my emails.
Steve
Yet another reason to be happy having shut my trucking business down in January. I did business with this company and could have been one of their bag holders. About 1000 more of these brokers and A 1000 more carriers are going to have to dissappear before this turns around I think.
Leo Somerset
Currently we are an active carrier that has over 4 big invoices overdue and the brokers don’t respond to out emails for payment.
These brokers should all be fined by the Sec and the owners of the brokers should go to jail for fraud and stealing hard working people’s money we need to have shippers post there own loads and contract with carriers and shipper’s brokers don’t need to exist anymore just all frauds including TQL they all are the same look what happened to Convey in Seattle wa. This is terrible and someone needs to be held accountable!
Andrea Pollock
The fact that Michael Johnson said, “We are not going out of business, we are not filing bankruptcy. But if you are on this call you are out of a job.”
This is the worst I have ever heard from a company ever. Then to be cut off. Not able to ask any questions and then shut off our computer access. This just does not sit well with me at all. Give us our computers but not 100% sure if we will be paid.
I do not want to be named as I could be sued.