YRC trims more jobs

YRC trims more jobs YRC Worldwide, whose combined companies control the largest share of the U.S. less-than-truckload market, has axed 200 non-union jobs amid continuing recession in the trucking industry, according to wire service reports.
   Chairman and Chief Executive Bill Zollars told Bloomberg News that the cuts were necessary to keep the company’s size “commensurate with business volumes.”
      Early this year, YRC Worldwide eliminated 1,100 jobs and shut 27 service centers at two of its underperforming regional subsidiaries. It also eliminated about 100 non-union and salaried jobs. Restructuring costs and write-downs of its value contributed to $780 million in losses during the six-month period from last October, but the company returned to the black in the second quarter and has maintained profit guidance for the third quarter.
   In addition to tough times buffeting the trucking industry, YRC is coping with integration challenges from large acquisitions in the past several years.
   Zollars this spring repeatedly said he was encouraged that the economy was poised to improve in the second half, but now is taking a less upbeat stance.
   The recent layoffs are “in response to the performance of the U.S. economy, which seems to be softening again,” Zollars said in an interview with Reuters.
      U.S. government statistics last week showed second quarter growth at 3.3 percent, but many analysts believe the positive output was a response to consumers spending part of their stimulus checks and other temporary factors.
   “We thought the economy was beginning to stabilize, but since July it has fallen to a lower level again,” he said. “We think the economy will continue to struggle for the next few months. It may be that all of the headwinds out there have had a cumulative effect on the American consumer.”
   The trucking and logistics conglomerate has also had turnover in its executives ranks, including the departure in August of Chief Financial Officer Stephen Bruffet to competitor Con-Way Inc. In July, YRC promoted Phil Gaines to president of its Yellow Transportation unit after the departure of Maynard Skarka.