Layoffs continue to impact the freight industry as firms across the U.S. and Mexico announced 8,794 job cuts over the past several weeks.
The workforce reductions are tied to companies operating in sectors such as trucking, warehousing, logistics, food suppliers and manufacturing.
In the U.S., companies announcing mass layoffs include Lacroix Electronics, FedEx, Frito-Lay, Blue Diamond Growers, Michaels Stores, Kohl’s, Target, JCPenney, Bilfinger Inc., Globe Motors and Geodis Inc., according to media reports and Worker Adjustment and Retraining Notification Act notices.
States that saw the most freight-related layoffs include Arizona, Alabama, California, Georgia, Florida, Illinois, Ohio, Tennessee and Texas.
France-based manufacturer Lacroix Electronics is closing factories in Grand Rapids, Michigan, and Juárez, Mexico, and a warehouse in El Paso, Texas, eliminating 1,250 jobs.
Officials for Lacroix Electronics said the decision to close its manufacturing plants in the U.S. and Mexico was due to reduced revenue in North America, exposure to the automotive sector, and uncertainty caused by tariffs, according to Crain’s Grand Rapids Business and MSN.
Freight-related companies in Mexico have also recently announced major workforce reductions.
Steel products producers Arcomex and Schneider Electric are reportedly laying off almost a combined 1,000 workers at factories in the Mexican cities of Queretaro and Tlaxcala, according to El Sol De Tlaxcala.
Officials for the Confederation of Mexican Workers (CTM), a major trade union in the country, said tariffs and lower consumer demand for cars and electronic goods in the U.S. caused the layoffs.
“Yes, it is the effects of tariffs, that’s right,” Víctor López Hernández, CTM’s secretary of labor and legal affairs in Tlaxcala, said. “The supply chains downstream of assembly will be affected. Auto parts made in Tlaxcala will be affected, the injection of plastics, which is also important for automobile assemblies, will foreseeably be affected by the situation that is occurring in the automotive market.”
Tire maker Michelin also announced it was closing a factory in Queretaro, Mexico, eliminating 480 jobs, according to Reuters.
Company | City | Type | Reason | Layoff date | Number of layoffs |
Lacroix Electronics | Grand Rapids, Michigan; El Paso, Texas; and Juarez, Mexico | Electronics manufacturer | France-based company is closing its two plants in US and Mexico; and a warehouse in El Paso | June | 1,250 |
Pixelle Specialty Solutions | Chillicothe, Ohio | Produces specialty papers for printing and packaging applications | Company restructuring | Aug. 10 | 780 |
Kohl’s | Middletown, Ohio | Retailer | Closing e-fulfillment center | Sept. 12 | 768 |
Blue Diamond Growers | Sacramento, California | Almond growers cooperative | Closing almond processing and manufacturing operations | Sept. 1 | 632 |
Schneider Electric | Tlaxcala, Mexico | Steel products manufacturer | Downsizing | March | 500 |
Michelin | Querétaro, Mexico | Tire manufacturer | Closing plant, consolidating operations | Dec. 31 | 480 |
Arcomex | Tlaxcala, Mexico | Steel products manufacturer | Downsizing | May | 450 |
Frito-Lay | Rancho Cucamonga, California | Food and beverage company | Facility closure | June 11 | 432 |
FedEx | Jackson, Georgia | Parcel carrier | Closing facility | July 14 | 383 |
RWTL Capacity Solutions LLC | Kingman, Arizona | Class 8 truck leasing | Unspecified | June 16 | 368 |
Meyer Burger Americas | Goodyear, Arizona | Solar panel manufacturer | Closing plant | May 22 | 355 |
KRP Transport | Burlington, New Jersey | Trucking company | Unspecified | Sept. 15 | 298 |
JCPenney Alliance Supply Chain | Haslet, Texas | Retailer | Distribution center closure | Nov. 1 | 296 |
Momence Packing Co. | Momence, Illinois | Meat packing company | Closing plant, restructuring | June 2 | 274 |
Michaels Stores | Tracy, California | Retailer | Distribution center closure | Aug. 4 | 229 |
Need It Now Delivers LLC | Fort Lauderdale and Jupiter, Florida | Transportation and logistics provider | Last mile delivery provider closing two operations due to loss of customer | Aug. 9 | 171 |
Bilfinger Inc. | Theodore, Alabama | Industrial manufacturing company | Adjusting workforce based on contract requirements | April 16 | 143 |
Panera LLC | Orlando, Florida | Bakery restaurant chain | Closing bread production, distribution facility | July 25 | 114 |
Stephens Distributing Co. | Fort Lauderdale, Florida | Warehouse and distribution provider | Company sale | Dec. 31 | 110 |
Morgan Truck Body LLC | Orrville, Ohio | Manufacturer of commercial truck and van bodies | Unspecified | Aug. 1 | 110 |
Mission Linen Supply | Chino, California | Linen and uniform supplier | Layoffs at its Chino plant due to loss of business | Aug. 2 | 82 |
Stingray Pressure Pumping | Belmont, Ohio | Manufacturer of industrial products for oil and gas industry | Plant closure | Aug. 15 | 75 |
Globe Motors | Dothan, Alabama | Automotive manufacturer | Unspecified | July 25 | 73 |
Accelerate360 Distribution | Ontario, California | Distribution and logistics provider | Closing facility | Aug. 8 | 66 |
Target Corp. | Savannah, Georgia | Retailer | Cutting jobs at a distribution center | Aug. 15 | 62 |
WIOSS Atlanta LP | Forest Park, Georgia | Logistics provider | Closing distribution center it operated for Kroger | July 19 | 53 |
Pratt Industries | Livonia, Michigan | Packaging supplier | Loss of contract with Ford Motor Co. | Aug. 10 | 53 |
Menzies Aviation | Los Angeles | Aviation services business | Discontinuing freighter ground handling services at LAX | July 31 | 46 |
Geodis Logistics | Mt. Juliet, Tennessee | Transport and logistics provider | Closing facility | June 10 | 40 |
NexTraq LLC | Atlanta | Fleet management solution provider | Unspecified | July 20 | 39 |
Hickman’s Family Farms | Buckeye, Arizona | Fresh eggs producer, distributor | Temporarily closed due to bird flu | Jun 16 | 21 |
GTM Wholesale Liquidators | San Diego, California | Retailer | Closing distribution center | July 31 | 18 |
Endries International | Sycamore, Illinois | Industrial components maker for OEMs | Layoffs at warehouse and office location | Unspecified | 16 |
JMJ Equipment Transport Inc. | Yuma, Arizona | Trucking company | Layoffs | June 11 | 7 |