YRC Worldwide will fire 600 nonunion employees in the next several weeks as a result of its Yellow Transportation-Roadway integration and weak business volume brought on by the weak economy.
“We’re executing our plans and making some tough but necessary decisions in response to the economy and the needs of our business,” said YRC Chairman, President and CEO William D. Zollars in an internal memo to employees.
Zollars said the corporate and support staff reductions will occur at different levels and locations. “Union workforce adjustments are ongoing in response to shipping volumes. Staff reductions are difficult, but reflect a necessary action to be more cost-effective and efficient.”
Eligible employees were offered early retirement, which included subsidized medical coverage until age 65, according to a YRC spokeswoman, and all affected employees will receive severance benefits.
Wall Street analysts are keeping close tabs on the LTL giant as it moves into the second quarter and works to trim costs and rebuild its network under tight restrictions from its bank lenders.