Yellow Corp. to Lay Off 250 Workers by Year-End
OVERLAND PARK, Kan. (AP) _ Yellow Corp. will lay off about 250 employees by the end of the year because of tough price competition, the company announced Friday.
Most of the cuts will come from Yellow Freight System, the company’s trucking subsidiary, but staffs at the parent company and the technology services unit will also be scaled back.
The layoffs amount to about 1 percent of Yellow’s 25,000 employees around the country.
The layoffs are part of an intense cost-cutting effort announced in July to restore company profitability. Yellow said more cost reductions may be made in the first quarter of 1996, after a review of field operations is completed.
Yellow’s stock price was unchanged at $12 per share in midday trading on the Nasdaq Stock Market.
``While we are saddened by the need for today’s layoffs, they are unavoidable,″ Yellow Corp. spokeswoman Linda George said. ``As the industry’s largest LTL (less-than-truckload) carrier, Yellow Freight is bearing the brunt of severe industry price discounting in its major markets.″
George said the trucking industry is suffering from excess capacity.
The company also said today that Yellow Freight is notifying about 1,000 union employees of seasonal layoffs in November and December. A similar seasonal layoff of about 635 workers were laid off in late 1994, and George said some or all of the 1,000 union workers may be recalled.
The seasonal layoffs are not considered part of the corporate cost-cutting effort.
Earlier this week, Yellow Freight announced plans to increase general freight rates by an average 5.85 percent starting Jan. 1 as part of the plan to restore profitability.
Yellow, based in Overland Park, Kan., provides shipping and distribution for businesses throughout North America, Europe and the Pacific Rim.