Watch Now

104 laid off as trucking firm closes Texas location

Phoenix-based EVO Transportation cites loss of major client as reason for closing in Austin, Texas

EVO Transportation and Energy Services Inc. will permanently close its facility in Austin, Texas, by Jan. 9. (Photo: Jim Allen/FreightWaves)

EVO Transportation and Energy Services Inc. (OTC Pink: EVOA) will permanently close its facility in Austin, Texas, by Jan. 9, according to a notice sent to state officials Friday.

The Phoenix-based trucking company will lay off 104 employees, “due to unfortunate and unforeseen circumstances caused by a large client unexpectedly notifying EVO that it had chosen a new contractor,” according to documents filed Friday.

EVO Transportation is a nationwide transportation operator for the U.S. Postal Service, according to its website. The company operated a nationwide fleet of 1,100 tractor-trailers and employed as many as 1,400 people at one time.

In May, EVO Transportation was asked to return $10 million it had received under the federal Paycheck Protection Program (PPP).

U.S. Rep. James Clyburn, the chairman of the U.S. House Select Subcommittee on the Coronavirus Crisis, sent a letter to EVO Chief Executive Officer Tom Abood stating the PPP funds were not for companies like EVO.

“We did not intend for these funds to be used by large corporations that have a substantial investor base and access to capital markets,” Clyburn wrote in the April 30 letter. 

Officials with EVO Transportation chose not to return the money.

“As an essential service provider to the United States Postal Service and other shipping customers, the payroll funding enabled EVO to continue its operations at a time of financial strain and severe market dislocation,” EVO officials said in a statement on May 9. “EVO is made up of multi-generational American businesses employing drivers, dispatchers, mechanics and support personnel who have served USPS and other shippers for decades.” 

Click for more FreightWaves articles by Noi Mahoney.

More articles by Noi Mahoney

Auto parts factory creating 700 jobs in Mexico

More layoffs in Texas for Southwest Airlines, Hilite International

China replaces Mexico as US top trading partner

2 women face federal terror charge over train interference


  1. Wayne Zeman

    US Government:
    Sorry EVO, we mistakenly sent you that $10M, could you please send it back?

    EVO: No.

    US Government:
    Consider your US postal contract canceled !

  2. CaMisha Stewart

    We are a small company and work with others, but if we can help drivers get hired we would love to help. [email protected]. If you are interested in doing freight, car hauling or tow please reach out. If you are an Owner operator we can assist with loads.

  3. Robert Frey

    Dog eat Dog. If another company comes in and bids just 1/4 cent a mile, lot of money saved. Postal service probably didn’t ask EVO to lower price. Agree don’t have all your eggs in one basket.

  4. D. Clay

    Very poor and dumb decision that the trucking management made by relying on one customer as a primary source of revenue! Hello! Diversify your customer base so if one customer decides not to renew their contract and go with another company if doesn’t effect the trucking company to much regarding the revenue, because the other customers are picking up the revenue for the trucking company revenue! What really sad the employees have to suffer because of bad management decisions!

Comments are closed.

Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Florida, Maryland and Texas. Contact [email protected]