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  February 12th, 2016 | Written by

XPO Logistics Implements Planned Workforce Reduction In Less-Than-Truckload Business

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  • XPO Logistics redesigned organization to enhance profitability and customer service.
  • XPO Logistics expects actions to reduce costs by more than $20 million annually with workforce reductions.
  • XPO exec: We will grow LTL by expanding service capabilities and cross-selling LTL to XPO's full customer base.

XPO Logistics, Inc. has made further progress with its previously announced plan for synergies in its less-than-truckload (LTL) business acquired from Con-way Inc.

Approximately 160 non-sales positions have been eliminated as the company continues to migrate to a more efficient LTL organization. Most of the reductions were in administrative, management and back-office functions, and impacted less than one percent of the LTL workforce in North America. Another 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 $20 million against a targeted operating profit improvement of $170 million to $210 million over two years. To date, approximately $50 million of expected annualized savings have been achieved in the three months since the company acquired Con-way on October 30, 2015. That transaction, valued at $3 billion, made XPO the second largest LTL provider in North America and expanded the company’s global contract logistics platform.

“Our plan for LTL is very much on track for our near-term and long-term goals,” said Tony Brooks, president of LTL for XPO Logistics. “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. 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.”