US freight and manufacturing sectors shed more than 7,000 jobs in restructuring wave
Tyson Foods and Essendant lead a broad wave of closures across the US supply chain, driven by network consolidation and financial pressure.
A fresh wave of layoffs and facility closures has impacted more than 7,000 workers across US freight, distribution, and manufacturing networks. The reductions, detailed in a report from FreightWaves, involve major players including Tyson Foods, FedEx, Ryder, CJ Logistics America, and Daimler Truck. These cuts reflect a broader trend of restructuring within transportation, warehousing, and production sectors.
Tyson Foods accounts for the largest portion of the workforce reductions, eliminating more than 3,000 jobs as it closes facilities in Joslin, Illinois, and Eagle Mountain, Utah. The food producer is shifting its beef operations towards Nebraska, Kansas, and Texas, citing a historic cattle shortage as a key factor in the consolidation of its business.
Wholesale distributor Essendant is also undertaking significant cuts, affecting 1,278 roles across six states. The company is facing capital constraints and has warned it may cease operations and liquidate if it cannot secure additional financing or find a buyer. WARN notices indicate the reductions will impact approximately 644 jobs in Illinois, 192 in Georgia, 150 in Pennsylvania, 136 in Texas, 103 in California, and 53 in Arizona, with cuts scheduled to begin on 3 October.
Other notable reductions include Daimler Truck, which plans to move truck manufacturing from Portland, Oregon, to facilities in North and South Carolina by the end of the year, affecting approximately 375 employees. HelloFresh is closing its distribution centre in Swedesboro, New Jersey, cutting 374 jobs effective 17 November, while Carlex Glass America will permanently close its operation in Vonore, Tennessee, affecting 325 workers as production shifts towards Nashville.
Logistics and parcel carriers are also affected, with FedEx cutting 173 jobs across three Southern California operations as part of its Network 2.0 transformation. Postal Center International is eliminating about 457 positions across Florida, Texas, and Massachusetts, and Ryder is closing an operation in Fayetteville, North Carolina, resulting in 73 layoffs effective 12 October.
The report highlights that financial distress is a driver for several notices, including West Marine, which is eliminating 80 positions at its Fort Lauderdale support centre while undergoing Chapter 11 bankruptcy restructuring. These facility closures and network consolidations may reshape freight volumes and trucking lanes, even where carriers are not the direct employers being affected.
