Mass layoffs continue across freight-related companies in the U.S. and Germany.
More than 3,500 job cuts have been announced since April 30, according to media reports and Worker Adjustment and Retraining Notification (WARN) Act notices.
Since Jan. 1, more than 30,000 freight-related layoffs have been announced, impacting workers in food production and distribution, manufacturing, transportation, warehousing, and logistics.
Manufacturing, food production industries hit hard
Among the companies facing layoffs this month, manufacturers and food producers announced the most reductions.
Steel maker Cleveland-Cliffs recently announced it will lay off about 950 workers as it idles two Pennsylvania plants, along with a factory in Illinois. The company cited weak demand as one of the main reasons for the decision.
Atlanta-based Smurfit Westrock said it is closing four factories and laying off a total of 650 workers. The packaging manufacturer is closing plants in Texas and Minnesota, as well as two in Germany.
Georgia-Pacific Corp. is permanently closing its plywood mill in Emporia, Virginia, and laying off 554 employees. The shutdown is due to a decline in plywood demand caused by a slower housing market, company officials said in a news release.
Other manufacturers announcing plant closures include Elkay Plumbing Products Co. in Savanna, Illinois, affecting 135 workers; and plastics maker Berry Global Inc., which is closing a plant in Lannett, Alabama, and laying off 112 people.
Food production and distribution firm Weinstein Industries LLC and its sister company Midwest Perishable Industries are closing two meat processing centers, as well as its transportation and warehousing arm, PDS Industries LLC. The closures will result in 115 layoffs.
Amsted Rail Co. Inc., which makes railcar components, said it is laying off 74 workers from a factory in Granite, Illinois. The company cited a “business slowdown” in a state filing as its reason for the workforce reduction.
3PLs and distribution providers also report layoffs
Rite Aid said it is closing distribution centers in Aberdeen, Maryland, and Des Moines, Washington, resulting in 494 layoffs.
On May 5, Rite Aid announced it was filing for Chapter 11 bankruptcy and plans to either sell or close its 1,240 stores and facilities across 15 states.
Berger Logistics said it is closing its supply chain operations in Phoenix and laying off 121 workers by June 4. The transportation, forwarding and logistics services firm, which is based in Austria, did not provide a reason for the facilities closure.
Logistics and warehouse provider Cardinal Logistics Management Corp. said it is laying off 43 warehouse workers by June 13 from a facility in Naperville, Illinois, after losing a contract.
Northern Air Cargo LLC said it is closing its operations in Miami and laying off 30 workers by July 13.
Additionally, up to 40 pilots who are based out of Miami International Airport but do not reside in
Florida will be furloughed, Northern Air Cargo officials said in a WARN notice filing. The company did not provide a reason for the facility’s closure or furloughs.
Company | City | Type | Reason | Layoff date | Number of layoffs |
Cleveland-Cliffs Inc. | Riverdale, Illinois; Conshohocken and Steelton, Pennsylvania | Steel mills | Insufficient demand | June 30 | 950 |
Smurfit Westrock | Forney, Texas; St. Paul, Minnesota; two factories in Germany | Packaging manufacturer | Widespread staff and facility reduction | June 30 | 650 |
Georgia Pacific LLC | Emporia, Virginia | Plywood mill | Slow home sales | July 1 | 554 |
Rite Aid | Aberdeen, Maryland; Des Moines, Washington | Drugstore/retail chain | Chapter 11 bankruptcy, closing two distribution centers | June 4 | 494 |
Elkay Plumbing Products Co. | Savanna, Illinois | Manufactures faucets, bottle filling stations, drinking fountains | Closing plant | December 31 | 135 |
Berger Logistics | Phoenix | Logistics and storage solution provider | Closing facility | June 4 | 121 |
Berry Global Inc. | Lanett, Alabama | Plastics manufacturer | Closing plant | July 1 | 112 |
PDS Industries LLC, Midwest Perishable Industries, Weinstein Industries, LLC | Forest Park, Illinois; Madison, Wisconsin | Meat processor and its transportation company | Closing two meat processing centers and its transportation company | May 31 | 115 |
Stahls’ Decorating Fulfillment Center, Transfer Express Inc. | Chandler, Arizona | Garment manufacturer, materials and equipment supplier | Closing two facilities | July 3 | 86 |
Amsted Rail Co. | Granite City, Illinois | Manufactures components for rail cars | Business slowdown | June 26 | 74 |
United Facilities Inc. | Galesburg, Illinois | Logistics and warehouse provider | Loss of contract | June 16 | 62 |
Saddle Creel Logistics | Richmond, Virginia | Warehousing, order fulfillment and transportation solutions | Unspecified | July 31 | 54 |
Trigo Group | Austin, Texas | Provides staffing solutions for the automotive, aerospace, transport industries | Tesla workforce reduction at Austin Gigafactory | May 7 | 50 |
Cardinal Logistics Management Corp. | Naperville, Illinois | Third-party logistics provider | Loss of contract | June 13 | 43 |
TH Foods Inc. | Elgin, Illinois | Snack food manufacturer | Unspecified | June 30 | 33 |
Northern Air Cargo | Miami | Air cargo carrier | Unspecified | July 13 | 30 |