XPO said it39s achieved 50 million in total cost cuts since acquiring Conway last October Photo XPO Logistics

XPO Logistics cuts 190 LTL jobs

Feb. 1, 2016
Cuts expected to save $20 million annually.

XPO Logistics eliminated 190 jobs within its LTL operation last week as it integrates the acquisition of Con-Way into its corporate structure: cutting 160 non-sales positions along with 30 others characterized as “redundancies” created by Con-way deal.

Most of the reductions were in administrative, management and back office functions, noted Tony Brooks, president of LTL for XPO Logistics, affecting less than 1% percent of the company’s total LTL workforce in North America.

He added in a statement that, collectively, those cuts are expected to reduce annual costs by more than $20 million against a targeted operating profit improvement of $170 million to $210 million over two years.

To date, XPO said it’s achieved some $50 million in expected annualized savings since it acquired Con-way at the end of October last year.

"Our plan for LTL is very much on track for our near-term and long-term goals,” Brooks noted. “The integration of Con-way has given us the opportunity to engineer a leaner, more results-oriented LTL operation. We plan to double the number of strategic account managers over the next few months. Our focus is on growing LTL by expanding our service capabilities and cross-selling LTL to XPO's full customer base."

He pointed out that XPO’s “new” organizational structure is based on “clearly delineated” profit and loss (P&L) responsibilities and customer service accountability at the field level, increase the efficient use of our capacity, improve transit times in key lanes, and make XPO’s “entire network” more productive.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

The Future of Mirrors is Closer Than it Appears

Why Mirror Camera Systems are the next step for fleet safety and exoneration While many commercial trucking cameras are similarly marketed, they are not all created equally. The...

The 20:1 Solution: Unlocking the ROI of a Modern Asset Maintenance Solution

Discover how modern fleet maintenance software can drive step-change improvements in shop efficiency, cost control and vehicle productivity, along with how to calculate the ROI...

Digital and AI Solutions for Rideshare Safety

Anyline’s study, “How Digital AI Solutions Can Enhance Rideshare Safety,” reveals rideshare drivers are overly confident in their tire knowledge, risking passenger safety. Download...

Introducing the World’s First Mobile Tire Tread Scanner

Anyline’s innovation allows accurate tire tread measurement via any mobile device, ensuring legal compliance for fleets. Read more and find out how you can cut operating costs...