XPO Logistics has eliminated about 190 non-sales positions in its less-than-truckload business, which it acquired when the company bought Con-way Inc. last year.
The majority of reductions were in administrative, management and back-office functions, according to XPO, affecting less than 1% of its North American LTL workforce. Thirty positions were eliminated from other parts of the company to address redundancies created by the Con-way acquisition.
“The integration of Con-way has given us the opportunity to engineer a leaner, more results-oriented LTL operation while improving on our industry-leading customer service levels,” said Tony Brooks, president of LTL at XPO Logistics. “Our focus is on growing LTL by expanding our service capabilities and cross-selling LTL to XPO's full customer base.”
The company said the cuts were made to make its LTL business more efficient and profitable. XPO added that it has achieved $50 million in expected annualized savings since acquiring Con-Way on Oct. 30, 2015.
"Our new organizational structure is based on clearly delineated P&L responsibilities and customer service accountability at the field level,” said Brooks. “We're also optimizing our footprint to increase the efficient use of our capacity, improve transit times in key lanes and make our entire network more productive."
In addition to Con-way, last year XPO also acquired UX Specialized Logistics, Bridge Terminal Transport and Norbert Dentressangle.
It purchased Con-way for $3 billion, making it the second largest LTL provider in North America.