XPO Logistics Inc. has closed seven freight terminals in the
former Con-way Inc. trucking network, extending cost reductions at the business
it acquired last fall.
The shutdowns in what
XPO said were remote locations follow the elimination of 190 jobs last week in
what the company said were back-office areas of the former Con-way Freight
less-than-truckload operation, which sells delivery services on trucks for
“We’re continuing to
migrate to a more efficient LTL organization, with better network efficiency
and greater utilization of our capacity,” XPO said in a statement. “As part of
our planned restructuring, we decided to close seven service centers in remote
areas without exiting any markets.”
The company declined
to identify the locations of the closed terminals.
XPO said shipments
from the customers near the sites would be processed through other, larger
facilities, making those operations more efficient. “All of our LTL customers
have continuity of service during the transition,” the company said.
The $3 billion Con-way
purchase completed last October capped a rapid series of acquisitions in recent
years that have built XPO into a $14 billion operation. XPO Chairman and Chief
Executive Bradley Jacobs has said the company is taking a break from
its buying spree to focus on integrating the businesses it acquired last year,
including Con-way and French trucker Norbert Dentressangle.
Shares in XPO, which
reports full-year 2015 earnings on Feb. 23, were up more than 11% in trading
Thursday, to $24.24.