Coyote Logistics, a wholly owned subsidiary of UPS Inc. (NYSE: UPS), is expected to announce Friday that it will lay off approximately 200 people, according to people familiar with the matter.
It was not immediately clear where the layoffs will occur. At the end of January, rumors spread that layoffs would be concentrated on Coyote’s Large Enterprise operations teams, the staff who are dedicated to Coyote’s largest shipper accounts. Significantly lower truckload volumes at Coyote, which sources said dropped from over 8,000 non-UPS loads per day to approximately 6,100 non-UPS loads per day over the past year, meant that operations teams were underutilized.
But sources spoke to FreightWaves about a conflict between Coyote and UPS management regarding which employees would be terminated, delaying the layoff until Feb. 16. The first list that Coyote’s middle managers generated was adjusted and broadened to conform to UPS’ diversity, equity and inclusion mandate that underrepresented groups were not to be disproportionately impacted by the cuts. “Low performers” across all divisions, not limited to mostly Large Enterprise, will be affected by Friday’s cut, with an emphasis on non-revenue-generating cost centers like IT and operations.
In 2015, UPS acquired Coyote for $1.8 billion, about one times revenue that year. Since then, Coyote has doubled in size, with estimated 2022 revenue of $3.8 billion. Coyote’s revenue story hasn’t always been up and to the right, though: 2022 revenue was markedly lower than 2021’s $4.7 billion.
In the past several years, UPS corporate management has made a series of changes to the brokerage, including reducing incentive-based compensation, removing carrier reps’ visibility into their margins per load and aggressively enforcing noncompete clauses — even against non-revenue-generating employees like carrier reps — in an attempt to reduce churn and control costs.
In 2020, Coyote laid off 55 people — 30 IT workers from its Chicago headquarters and 25 carrier representatives at its Chattanooga office.
The layoffs at Coyote come at a time of widespread reductions in head count across the transportation and logistics industry. On Thursday, digital freight platform Convoy announced it will be restructuring, leading to an undisclosed number of layoffs. Last November, C.H. Robinson laid off about 650 employees as a part of a cost-saving measure pushed by activist investors that ultimately led to the ouster of CEO Bob Biesterfeld in January. Later in January, Uber Freight laid off approximately 150 employees, about 3% of its workforce.
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Big Rick
they havent had a good flatbed load since 2015
John
Ann
You are spot on it’s the driver that deserves the money they do the job… dispatchers and Sales people make more than the people doing the work…. Cut the fat stop giving the brokers all the power and support the driver.
Alex D.
As Coyote suits the name for UPS they have been the low ballers for years and are getting what they deserve. Since TForce took over there has been a large chance I’ve seen as an outsider looking in. I can only imagine how it is to work for them… Ok I’ll pass and couldn’t think of working for a crooked union
Ann
Top heavy is why truck drivers don’t ever see better wages.
Here ,we work 24/7 inside a metal box.
That was what was discovered why UPS was waaaaay too TOP HEAVY….right after they were sold as well.
Technology can do what people cannot because there are Algorithms now….
Get extra money to truckers and there will be no shortages
anon
This seems par for the course seeing as how the whole company is built on exploitive labor practices.
Ray
Bloomberg Tax
TOPIC
The Inflation Reduction Act: Key corporate tax provisions
Corporate minimum tax
Stock buybacks
Superfund excise tax
Tax credits
Resources
What is the Inflation Reduction Act?
The Inflation Reduction Act (H.R.5376) is a climate and tax bill that advances elements of the administration’s economic agenda. President Biden signed the Inflation Reduction Act into law in August 2022.
The legislation includes provisions designed to prevent the largest corporations from exploiting tax loopholes that allow them to pay little or no federal income tax. It also includes new and extended tax credits designed to incentivize businesses and individuals to boost their use of renewable energy.
if you voted to the winning party last dec. your vote made the inflation act that was push thought that had nothing to do with helping inflation it was in news much but their was a big tax on business and minimum tax they have to pay regardless. So that the reason why many are bing layoff . But that party media don’t want to remind people that their tax on business is not going to cause job loss.
Qout:
The Inflation Reduction Act imposes a corporate alternative minimum tax equal to the excess of 15% of a corporation’s adjusted financial statement income (AFSI) over its corporate alternative minimum tax foreign tax credit.
What corporations does the corporate AMT apply to?
The AMT applies to C corporations that, for three taxable years, have an average annual AFSI greater than $1 billion (and at least $100 million for members of foreign-parented international financial reporting groups where the group has average annual AFSI greater than $1 billion).
AFSI is the net income or loss set forth on an applicable financial statement, with certain adjustments.
The act provides rules for calculating AFSI for certain entities and types of income (e.g., consolidated groups, foreign-parented groups, effectively connected income). AFSI is reduced by accelerated depreciation deductions.
Frank Hammond
Anon – I know – he made a fortune when he sold to UPS. I was just remembering the Bad old Days when I had to deal with that arrogant jackass.
Matthew W Polhamus
If you’re white, you’re fired. That’s what DEI means. Competency is now a racist word. It counts for nothing. All that matters in that environment is how many boxes you check for DEI as an employee v