Con-Way: Cuts About 2,500 Jobs As Part Of Dec Announcement
February 11 2009 - 9:30AM
Dow Jones News
Con-way Inc. (CNW) Chief Executive Doug Stotlar said Wednesday
that his company has cut a total of about 2,500 jobs - or nearly
14% of its workforce - as part of large-scale reductions it
unveiled in early December.
The figure is more than the 1,450 job cuts that the trucking and
logistics company announced late last year, but Stotlar said
industry conditions have continued to deteriorate early in
2009.
Still, he held out some hope that the major cuts may be behind
the company.
"We have a certain geographic footprint we have to cover on a
daily basis" and are near the minimum number of employees needed to
do so, Stotlar said, speaking at a BB&T transportation
conference in Coral Gables, Fla. His comments were broadcast over
the Web.
Freight haulers have been struggling for some time as volumes
sag amid the weak economy.
From May through November, the American Trucking Association's
less-than-truckload tonnage index dropped 12.9%.
Less-than-truckload freight haulers consolidate cargo from more
than one customer on a single truck.
On Monday, FedEx Corp. (FDX) announced that it has cut about 900
jobs at its FedEx Freight unit, or about 2.5% of the unit's
employees.
Stotlar said pricing in the less-than-truckload freight sector
continues to be under pressure, noting that Con-way has had to
lower some rates merely to retain existing customers.
"It continues to be an aggressive environment," he said.
Still, he stressed that Con-way is well-positioned to weather
the ongoing downturn, citing among other things $248 million in
cash on the company's books.
-By Bob Sechler; Dow Jones Newswires; 512-394-0285;
bob.sechler@dowjones.com