U.S. Xpress Enterprises Inc. said Wednesday its previously announced staff cuts, corporate realignment and closing of its Variant office facility in Atlanta should cut $25 million in costs for the trucking giant over the next year.
The Chattanooga-based trucking company said the moves made this summer, which cut nearly 10% of the company’s nondriving and nonmaintenance staff, should help improve profitability and cash flow. Since May, U.S. Xpress has cut about 140 jobs, although company officials have declined to specify the number of employee layoffs from the changes.
Eric Fuller, president and CEO of U.S. Xpresss, said the changes are primarily focused on improving its over-the-road operations with limited effect on the company’s dedicated and brokerage businesses.
“Our vision to build a digitally enabled OTR fleet was ambitious and achieved certain successes, but with the freight market softening, it is important that we right-size our cost structure for the current environment to protect our corporate health, our commitments to our customers and our stockholders’ investment,” Fuller said in a statement issued after the markets closed Wednesday. “The investments we made in our digital enablement initiatives over the last few years will be incorporated into our newly realigned divisions.”
The company projects its staff reductions will save about $20 million a year in wage costs, and the company is looking for another $5 million a year in fixed costs savings through the disposal of real estate holdings and other expense cuts. The company recently ended its office lease for the Variant division in Atlanta, and U.S. Xpress has put up for sale one of its main corporate office buildings on Jenkins Road across from its headquarters facility.