Layoffs, bankruptcies batter U.S. logistics and manufacturing at start of 2026

More than 2,200 workers affected as rail, parcel, food, packaging and manufacturing firms slash jobs or seek bankruptcy protection

Closures, restructurings and bankruptcies are reshaping the U.S. logistics and manufacturing workforce at the start of the year. (Photo: Jim Allen/FreightWaves)
Gemini Sparkle

Key Takeaways:

  • U.S. logistics, manufacturing, and supply-chain sectors began 2026 with a surge of layoffs, facility closures, and bankruptcies affecting over 2,200 workers nationwide.
  • Job cuts and closures are widespread, impacting diverse industries such as rail support services, food manufacturing, packaging, last-mile delivery, and e-commerce.
  • Companies are grappling with challenges like lost contracts, high operating costs, excess capacity, tighter credit conditions, and declining demand.
  • Several firms, particularly in e-commerce and related services, have filed for Chapter 11 bankruptcy due to significant financial distress and cash shortages.
See a mistake? Contact us.

U.S. logistics, manufacturing and supply-chain firms have started 2026 with a surge of layoffs, facility closures and bankruptcy filings, affecting more than 2,200 workers nationwide. 

State notices and court records show job cuts spanning rail support services, parcel networks, food manufacturing, packaging, last-mile delivery and e-commerce, as companies grapple with lost contracts, high costs, excess capacity and tighter credit conditions.

RailCrew Xpress to lay off more than 400 workers after losing CSX contract

RailCrew Xpress, a Kansas City–based transportation company that shuttles railroad crews between job sites, is laying off more than 400 employees across multiple states after losing a major contract with CSX, according to company disclosures and state WARN filings.

The layoffs affect workers in Virginia, Georgia and Florida, with additional office closures planned in North Carolina, where at least eight locations are slated to shut down. Employees in Kansas and Missouri are not currently included in the cuts.

Founded in 2005, RailCrew Xpress operates in roughly 25 states. Prior to the layoffs, the company employed about 2,000 workers.

AVI Food Systems to lay off 297 workers in Philadelphia

AVI Food Systems plans to lay off 297 employees in Philadelphia as part of a facility closure, according to state WARN filings.

The layoffs are scheduled to take effect Feb. 1 and impact workers at locations listed as 2400 Spruce St. and 1 Convention Ave., suggesting the job losses are tied to large institutional foodservice operations.

The company has not publicly disclosed the reason for the closure. AVI Food Systems operates on-site dining and foodservice programs at hospitals, universities, convention centers and other high-traffic facilities.

Packaging Corporation of America to lay off 200 workers at Washington mill

Packaging Corporation of America plans to lay off about 200 employees at its containerboard mill in Wallula, Washington, after deciding to permanently shut down a paper machine and kraft pulping operations at the site, according to state filings.

The layoffs are expected to take effect in February. Other parts of the mill — including a recycled pulping operation and a separate paper machine — will remain in operation.

PCA said the move is part of a restructuring aimed at improving the mill’s long-term viability amid high wood fiber and energy costs that have made the facility less competitive.

Kroehler Furniture closes North Carolina manufacturing plant

Kroehler Furniture Co. permanently closed its Conover, North Carolina, manufacturing facility on Dec. 31. The closure will result in the layoff of more than 275 employees, according to a state WARN notice.

The 132-year-old furniture maker is owned by American Signature, which filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware in November.

1 Squared Logistics lays off 160 workers in North Carolina

I Squared Logistics, an Amazon delivery service partner based in Garner, North Carolina, laid off 160 drivers and support staff after abruptly shutting down operations, according to state filings.

The layoffs follow the company’s decision to exit Amazon’s Delivery Service Partner program. Amazon said it is working to help displaced delivery workers find roles with other DSPs in the region.

Giant to close five Pennsylvania distribution centers, layoff 128 workers

The Giant Co. plans to shut down five centralized e-commerce fulfillment centers in Pennsylvania by the end of the first quarter of 2026, according to parent company Ahold Delhaize USA.

The closures affect facilities in Philadelphia, Willow Grove, Coopersburg, North Coventry and Lancaster.

The Giant Co. is a regional supermarket chain that operates in Pennsylvania, Maryland, Virginia and West Virginia. It is a subsidiary of Ahold Delhaize, and headquartered in Carlisle, Pennsylvania.

UPS to close Alabama distribution facility, lay off 128 workers

United Parcel Service is closing a distribution facility in Montgomery, Alabama, resulting in the layoff of 128 employees, according to a filing with Workforce Alabama.

The job cuts are scheduled to begin Feb. 2. The Montgomery closure is part of broader network changes as UPS restructures operations and reduces its U.S. physical footprint.

Comprehensive Logistics cuts 105 jobs in Georgia after losing major contract

Comprehensive Logistics laid off 105 workers at facilities in Crandall and Chatsworth, Georgia, in December after losing a major contract, according to WARN filings.

The Bonita Springs, Florida–based company specializes in inbound-to-manufacturing logistics, including warehouse management, sequencing, transportation and sub-assembly services, and employs more than 1,000 workers.

ADM to close Memphis facility, lay off 95 workers

Archer Daniels Midland will permanently close its Memphis facility, resulting in the layoff of 95 employees, according to state WARN filings.

The closure is scheduled to take effect Jan. 30. ADM is ending cottonseed crushing operations at the site as part of a new joint venture with Planters Cotton Oil Mill in Pine Bluff, Arkansas.

FedEx to lay off 89 workers at north Fort Worth facility

FedEx is laying off 89 employees at a facility in far north Fort Worth, Texas, according to a WARN filing with the Texas Workforce Commission.

The layoffs are scheduled to begin March 2 at the company’s site at 2001 World Wide Drive and are tied to FedEx’s multiyear Network 2.0 reorganization.

Microplastics lays off 86 workers, shutters Illinois plant amid asset sale

Microplastics Inc. has laid off 86 employees and shut down its headquarters and manufacturing facility in St. Charles, Illinois, according to state filings and Plastic News

The shutdown comes as the company’s lender moves to auction off equipment while negotiations are underway regarding a potential sale. Founded in 1989, Microplastics is an injection molder serving industrial and consumer markets.

Post Consumer Brands cuts 71 jobs at Michigan cereal plant

Post Consumer Brands is cutting 71 jobs at its cereal manufacturing plant in Battle Creek, Michigan, after halting production of several product lines, according to state filings.

The company will stop making Honeycomb cereal, peanut butter products and some granola items at the facility located at 275 Cliff St. The workforce reductions are expected to be finalized by the end of January.

U.S. Endodontics laying off 70 workers in Tennessee

U.S. Endodontics LLC is laying off 70 workers from a dental supply manufacturing facility it operates in Johnson City, Tennessee. The layoff will be effective by Feb. 27.

The dental equipment maker did not provide a reason for the worker reduction.

GNC lays off 66 workers from Phoenix distribution center

GNC is laying off 66 workers from a distribution center in Phoenix, according to state filings.

The company did not disclose the reason for the layoffs. GNC operates more than 2,300 stores in the U.S. and Mexico and employs about 17,000 workers.

United Piston Ring to close Wisconsin plant, lay off 60 workers

United Piston Ring is closing its manufacturing facility in Manitowoc, Wisconsin, resulting in the layoff of about 60 employees. 

The company said the closure is part of a restructuring of its manufacturing footprint and capacity.

The plant, located at 2920 Fairmont St., is scheduled to begin winding down operations March 6, with layoffs continuing through June 30.

Ryder to lay off 59 workers at southern Illinois logistics facility

Ryder Integrated Logistics is laying off 59 employees following the closure of a facility in Saint Elmo, Illinois. The facility employed 59 workers.

State records list the action as a plant closure, though Ryder has not publicly disclosed the specific business reasons behind the move. The filing classifies the operation under a trucking and trailer rental and leasing designation.

Ample Inc. files Chapter 11

Ample Inc. and its affiliate, Ample Texas EV LLC, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas on Dec. 16.

The San Francisco–based company develops modular battery-swapping systems for electric vehicles and is seeking to sell the business or restructure its finances amid severe cash shortages. Ample cut its workforce to just a few employees from roughly 120–160, despite raising more than $330 million since its founding in 2014.

FlexShopper files Chapter 11 amid e-commerce pressures

FlexShopper Inc., a Boca Raton, Florida–based lease-to-own consumer finance and e-commerce platform, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware, according to court filings 

The company and several affiliated entities filed on Dec. 22, reporting less than $1 million in assets at the parent-company level, while a key operating affiliate disclosed liabilities ranging from $100 million to $500 million. 

Court documents indicate no funds are expected to be available for unsecured creditors after administrative expenses are paid.

FlexShopper’s bankruptcy highlights mounting strain across retail finance platforms that sit between manufacturers, distributors and last-mile e-commerce sellers. 

The company’s model supported online and omnichannel retail sales by financing consumer purchases of durable goods, tying its performance closely to inventory turns, fulfillment volumes and returns management.

Food52 files Chapter 11 after mass layoffs

New York–based Food52 Inc., an e-commerce seller of kitchen and home goods, filed for Chapter 11 bankruptcy protection in Delaware.

The company reported $1 million to $10 million in assets and $10 million to $50 million in liabilities, citing sustained cash burn, declining post-pandemic demand and operational strain tied to its Schoolhouse and Dansk acquisitions.

Food52 cut about 40% of staff in March 2025, followed by additional layoffs in December that eliminated roughly 80% of its workforce in less than two weeks. Court filings show revenue fell to about $74.7 million in 2024 from roughly $160 million in 2021 as high fixed costs and inventory pressures weighed on cash flow.

Court records show Food52 generated about $74.7 million in revenue in 2024, down from roughly $160 million in 2021, as high fixed costs, fragmented supply chains and manufacturing-related inventory demands weighed on cash flow amid a broader slowdown in home goods demand.

America’s Test Kitchen, a leading, multi-platform, culinary media brand, entered into an agreement for the acquisition of certain assets of Food52 on Dec. 30, according to a news release.

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