Allied Holdings, Decatur, Ga., is cutting more jobs and restructuring corporate positions as it struggles to get back to profitability.

Allied is eliminating approximately 50 jobs -- roughly 15% of its work force -- in its corporate office. This follows a cut of about 60 in its corporate office staff during the first half of the year. In total, Allied has eliminated roughly 25% of the positions at its corporate office during 2001, which it expects will save it about $10 million a year.
Changes to the benefit plans of non-union employees effective Sept. 1 will save another $4 million a year, according to the company.
In addition to the job cuts at the home office, approximately 1,100 drivers, mechanics and yard personnel remain on lay-off and excess equipment remains idled.
The company, arguably the nation's largest auto hauler, was already losing money even more the current economic slump. During the first quarter of 2001 the company lost $18.9 million on revenues of $218.2 million, compared with revenues of $282.9 million and a loss of $1 million for the first quarter last year. Production for the "Big Three" auto makers dropped by 23 percent in the first quarter. New vehicle production in the United States and Canada was at its lowest level since 1993 in a first quarter without labor disputes.
Allied also announced the restructuring of its senior management team, with President and CEO Hugh Sawyer now managing twelve direct reports. "Although this is a broad reporting structure for the President and Chief Executive Officer, it is a technique we will use to expedite the decision-making process that is vital in a successful turnaround," Sawyer said.