A YRCW spokesperson confirmed to the news agency that an unspecified number of workforce adjustments' were underway to balance the company with lower demand during the recession. Reuters' sources said the cuts were substantial and cut across all departments.
YRC's flagship company Yellow Transportation was once the largest less-than-truckload carrier in the nation, but it has steadily lost market share in the past couple of years. The root of its troubles trace back to the acquisition of long-haul carrier Roadway Express and several regional lines in 2004 and 2005. YRCW has nearly completed a belated integration of Roadway Express and Yellow, which have forced the company to incur additional charges.
The company's operating loss was $300 million in the second quarter and totaled $680 million for the first half of the year.
Last year, the company laid off more than 1,100 workers and closed underperforming terminals in an effort to cut costs. It also reached a new five-year labor contract with the Teamsters union. The contract's more flexible work rules were supposed to help the company operate more efficiently. In recent months, YRC has scrambled to restructure its debt.
In early September, union workers agreed to a modified contract that cuts wages 5 percent and allows the company to postpone pension fund contributions for 18 months. The company expects to save about $45 million to $50 million per month through 2010 by these moves. The contract modification comes on top of one in January in which workers took a 10 percent reduction in wages and a 15 percent stake in the company. ' Eric Kulisch
