Truckload carrier Werner Enterprises, coming off a first quarter in which it posted an operating loss, has suspended its 401(k) matching program for employees.
A Werner (NASDAQ: WERN) spokeswoman confirmed the validity of a screenshot circulating online that announced the suspension of the matching program. She added that the suspension is considered “temporary.”
“As part of our previously communicated $40 million cost savings initiative for 2025, Werner is taking intentional steps to streamline operations and position the company for long-term growth,” the company said in a statement released to FreightWaves in response to a request for comment. “This includes difficult but necessary organizational changes. We remain committed to supporting our people through this transition and maintaining operational strength for our customers.”
The $40 million cost savings announced with the release of the first-quarter earnings was an increase from $25 million disclosed in late February in conjunction with fourth-quarter 2024 earnings.
Werner’s stock is down 26.9% in the past 52 weeks.
The screenshot is not a complete reproduction of the note from Werner executive David Marthaler that was circulated to employees last week.
“After careful consideration, Werner has made the difficult decision to temporarily suspend the discretionary matching contribution offered for the 2025 plan year,” the statement from Marthaler said. The change is effective immediately, he added.
The notice also said the company expects to reinstate the matching payment “in the future.” The screenshot tails off after the note says Werner expects to reinstate the benefit “when there is a significant improvement,” presumably in the company’s finances.
Werner posted what is believed to be its first quarterly operating loss in the first quarter, though there are reports it had posted earlier operating losses many years ago.
Its net income was also negative. Werner lost 12 cents per share, when the consensus estimate was that it would make 24 cents per share, according to SeekingAlpha. Total revenue for the quarter of $712.1 million fell short of the consensus estimate by about $27 million, SeekingAlpha said.
The operating loss was $5.8 million, compared to an operating income a year earlier of $15.6 million.
Werner’s guidance is somewhat nontraditional in that the company does not forecast earnings.
But there were a few parts of its latest forecast, released with the earnings, that reflected its view that the current weak market was not on the verge of turning around.
For example, Werner forecast that its revenue per total mile in its One-Way Truckload segment would grow 0% to 3% this year. Its forecast issued when its fourth-quarter earnings were released was for a 1% to 4% growth rate.
In its Dedicated segment, revenue per truck per week was estimated to grow 0% to 3% for the year. That estimate did not change amid other shifts in its forecast.
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