XPO Logistics and Southwest Airlines announced this week they could eliminate as many as 186 jobs in Texas, according to a Worker Adjustment and Retraining Notification (WARN) Act notice filed with the state.
XPO Logistics (NYSE:XPO) said it could be cutting up to 53 jobs at its distribution center (DC) in Lancaster, Texas, after one of its customers announced it would be “making a business model change.”
“The consolidation will result in the customer absorbing the work currently performed by XPO at 2935 Danieldale Road in Lancaster. XPO and our customer have agreed to transition the work and terminate the current contract between the companies effective Jan. 10,” XPO said in its filing.
Although the customer is not mentioned by name in the filing, Swedish appliance maker Electrolux AB (STO:ELUXB) is listed as the operator of the DC in Lancaster. In September 2019, Electrolux announced it would be eliminating 1,700 jobs globally due to increased raw material and tariff costs.
Greenwich, Connecticut-based XPO Logistics said its customer would be continuing operations at the DC and the “customer may offer continued employment to our current employees.”
XPO said, “In the event our customer is unable to hire any or all of our affected employees, we will work to place many of these displaced employees at other XPO operations in the Lancaster area,”
Dallas-based Southwest Airlines Co. (NYSE: LUV) sent WARN Act notices Wednesday to 1,503 employees, including 402 workers represented by the Aircraft Mechanics Fraternal Association, that their positions could be furloughed.
Southwest told mechanics and other employees that they could be furloughed in January as the carrier tries to negotiate cost cuts with union groups.
“The COVID-19 pandemic has devastated domestic air travel and tourism. Southwest Airlines has lost billions of dollars in revenues since the pandemic began,” the company said in its filing.
The furloughs could affect as many as 35 Southwest employees at Houston’s William P. Hobby Airport and 82 at Dallas Love Field.
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