XPO Logistics, Inc. announced further progress with its previously announced plan for changes in its less-than-truckload (LTL) business acquired from Con-way Inc.
Approximately 160 non-sales positions have been eliminated with most of the reductions in administrative, management and back office functions. According to the announcement, these reductions have impacted less than 1% percent of the LTL workforce in North America.
An additional 30 positions were eliminated in other parts of the company, primarily to address redundancies created by the acquisition.
Collectively, the actions are expected to reduce annual costs by more than $20m against a targeted operating profit improvement of $170m to $210m over two years. XPO Logistics have stated that to date, approximately $50m of expected annualised savings have been achieved in the three months since the company acquired Con-way on October 30, 2015.
Tony Brooks, president of LTL for XPO Logistics, said, “Our plan for LTL is very much on track for our near-term and long-term goals. 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. 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.”
XPO Logistics has global transportation capacity of approximately 19,000 owned tractors and 46,000 owned trailers, with another 10,000 trucks contracted through independent owner-operators, and access to more than 50,000 independent carriers.