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.