Layoff wave hits freight sector as nearly 9,000 jobs slashed

Job cuts hit workers in trucking, warehousing, food suppliers, manufacturing

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. (Photo: Jim Allen/FreightWaves)

Key Takeaways:

  • Over 8,700 freight industry jobs have been cut recently across the US and Mexico.
  • Layoffs impacted various sectors including trucking, warehousing, logistics, and manufacturing.
  • Contributing factors include reduced revenue, exposure to the automotive sector, tariffs, and lower consumer demand.
  • Significant job losses occurred in states like Arizona, Alabama, California, Georgia, Florida, Illinois, Ohio, Tennessee, and Texas, as well as in Mexico.

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.

CompanyCityTypeReasonLayoff dateNumber of layoffs
Lacroix ElectronicsGrand Rapids, Michigan; El Paso, Texas; and Juarez, MexicoElectronics manufacturerFrance-based company is closing its two plants in US and Mexico; and a warehouse in El PasoJune1,250
Pixelle Specialty SolutionsChillicothe, OhioProduces specialty papers for printing and packaging applicationsCompany restructuringAug. 10780
Kohl’sMiddletown, OhioRetailerClosing e-fulfillment centerSept. 12768
Blue Diamond GrowersSacramento, CaliforniaAlmond growers cooperativeClosing almond processing and manufacturing operationsSept. 1632
Schneider ElectricTlaxcala, MexicoSteel products manufacturerDownsizingMarch500
MichelinQuerétaro, MexicoTire manufacturerClosing plant, consolidating operationsDec. 31480
ArcomexTlaxcala, MexicoSteel products manufacturerDownsizingMay450
Frito-LayRancho Cucamonga, CaliforniaFood and beverage companyFacility closureJune 11432
FedExJackson, GeorgiaParcel carrierClosing facilityJuly 14383
RWTL Capacity Solutions LLCKingman, ArizonaClass 8 truck leasingUnspecifiedJune 16368
Meyer Burger AmericasGoodyear, ArizonaSolar panel manufacturerClosing plantMay 22355
KRP TransportBurlington, New JerseyTrucking companyUnspecifiedSept. 15298
JCPenney Alliance Supply ChainHaslet, TexasRetailerDistribution center closureNov. 1296
Momence Packing Co.Momence, IllinoisMeat packing companyClosing plant, restructuringJune 2274
Michaels StoresTracy, CaliforniaRetailerDistribution center closureAug. 4229
Need It Now Delivers LLCFort Lauderdale and Jupiter, FloridaTransportation and logistics providerLast mile delivery provider closing two operations due to loss of customerAug. 9171
Bilfinger Inc.Theodore, AlabamaIndustrial manufacturing companyAdjusting workforce based on contract requirementsApril 16143
Panera LLCOrlando, FloridaBakery restaurant chainClosing bread production, distribution facilityJuly 25114
Stephens Distributing Co.Fort Lauderdale, FloridaWarehouse and distribution providerCompany saleDec. 31110
Morgan Truck Body LLCOrrville, OhioManufacturer of commercial truck and van bodiesUnspecifiedAug. 1110
Mission Linen SupplyChino, CaliforniaLinen and uniform supplierLayoffs at its Chino plant due to loss of businessAug. 282
Stingray Pressure PumpingBelmont, OhioManufacturer of industrial products for oil and gas industryPlant closureAug. 1575

Globe Motors
Dothan, AlabamaAutomotive manufacturerUnspecifiedJuly 2573
Accelerate360 DistributionOntario, CaliforniaDistribution and logistics providerClosing facilityAug. 866
Target Corp.Savannah, GeorgiaRetailerCutting jobs at a distribution centerAug. 1562
WIOSS Atlanta LPForest Park, GeorgiaLogistics providerClosing distribution center it operated for KrogerJuly 1953
Pratt IndustriesLivonia, MichiganPackaging supplierLoss of contract with Ford Motor Co.Aug. 1053
Menzies AviationLos AngelesAviation services businessDiscontinuing freighter ground handling services at LAXJuly 3146
Geodis LogisticsMt. Juliet, TennesseeTransport and logistics providerClosing facilityJune 1040
NexTraq LLCAtlantaFleet management solution providerUnspecifiedJuly 2039
Hickman’s Family FarmsBuckeye, ArizonaFresh eggs producer, distributorTemporarily closed due to bird fluJun 1621
GTM Wholesale LiquidatorsSan Diego, CaliforniaRetailerClosing distribution centerJuly 3118
Endries InternationalSycamore, IllinoisIndustrial components maker for OEMsLayoffs at warehouse and office locationUnspecified16
JMJ Equipment Transport Inc.Yuma, ArizonaTrucking companyLayoffsJune 117

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 Maryland and Texas. Contact nmahoney@freightwaves.com