XPO Logistics Inc. continued to implement its cost cutting plan at the former Con-way Inc., closing freight terminals in what it described as “remote” locations.
XPO Logistics Inc. has continued to implement its cost cutting plan at the former Con-way Inc., shuttering seven truck terminals within its newly acquired trucking network.
The announcement comes shortly after XPO eliminated 190 back office and administrative positions from its less-than-truckload division in a planned reduction as part of its $3 billion acquisition. Those staff cuts included a group of high ranking executives at Menlo Logistics, Con-way’s contract logistics subsidiary, XPO confirmed to American Shipper earlier this week.
The company declined to identify the locations of the closed terminals, but said in a statement the terminals were in “remote” locations and customers would continue to be served by larger facilities in those areas.
“We’re continuing to migrate to a more efficient LTL organization, with better network efficiency and greater utilization of our capacity,” XPO said in a statement. “As part of our planned restructuring, we decided to close seven service centers in remote areas without exiting any markets.”
“All of our LTL customers have continuity of service during the transition,” the company added.
XPO is in the process of digesting several large acquisitions in 2015, including its $3.5 billion purchase French logistics and trucking company Norbert Dentressangle its significant contract logistics business in Europe. Chief Executive Officer Brad Jacobs recently told American Shipper the company won’t be making any new acquisitions in 2016, and will instead focus on cutting costs, reducing redundancies and refining its sales efforts.
XPO shutters seven Con-way truck terminals
