Logistics Layoffs Surpass 800 Mark Amid Warehousing and Transport Contract Volatility

Source: Jim Allen / Freight Waves

A wave of workforce reductions continues to sweep across supply chain businesses throughout the United States. These moves send a clear signal: While the spot freight market has shown signs of stabilization on certain lanes, the contract freight segment - particularly in warehousing and dedicated transport operations - is still buckling under immense pressure.

According to recent WARN Act filings, corporate disclosures, and media reports, 829 jobs have been slashed over the past three weeks across various states. The root causes stem from the loss of outsourced contracts, facility closures, and shifts in supply chain strategies.

Contract Turmoil Sparks Warehouse Headcount Reductions

Saddle Creek Logistics Services announced it will lay off 168 employees at its New Caney, Texas facility (near Houston), effective June 11. This decision comes after a partner client decided to insource its logistics network operations. The affected workforce primarily consists of warehouse material handlers and forklift operators. This move follows a previous layoff of 151 employees in early 2026 in Bessemer, Alabama, clearly reflecting a trend of shippers re-evaluating their outsourced logistics networks.

Similarly, Ryder System is exiting its warehousing operations in Waterloo, Iowa, after failing to reach a contract renewal agreement. The closure of this facility will result in 153 job losses on July 24. However, the company has committed to assisting in the transition of personnel to the new logistics provider.

Trucking Firms Cut Drivers and Dockworkers

In the trucking sector, Day & Ross USA is eliminating 149 positions across five states following the loss of business volume from contract negotiations in 2025. Specifically, about 100 of the cuts are concentrated at its Hamilton, Ohio facility (including 36 dockworkers and 54 drivers), alongside another 32 employees in Utica, Michigan.

Sentinel Transportation LLC, a dedicated fuel hauler affiliated with Phillips 66, is also downsizing its workforce by permanently laying off 126 employees across 25 locations in California. The company currently operates over 30 terminals nationwide. These reductions reflect a prolonged weakness in specific transport segments, particularly contract freight tied to industrial and energy demand.

Closure Wave Impacts Regional Logistics Networks

Restructuring efforts do not stop at localized cuts. Legacy Supply Chain Operations is closing four facilities across Alabama, Kentucky, and Tennessee, leaving 133 personnel jobless. In its state filings, the company did not disclose a specific reason for the move.

Meanwhile, the last-mile delivery segment also witnessed a shock as provider Pave It Forward Logistics abruptly shuttered operations on March 31. According to local reports, 100 workers in Lebanon, Tennessee, were laid off without receiving any severance pay or transition assistance.

Market Signals: Volatility Persists

This wave of layoffs is sweeping across all segments, from warehousing and dedicated contract carriage to last-mile delivery—areas inextricably linked to shippers' demand cycles and contract stability.

The common denominator of these disruptions stems from customer decisions:

●    Shippers insourcing logistics operations.

●    Contracts not being renewed or negotiations failing.

●    Restructuring and consolidating facilities across regional networks.

For the broader freight market, this trend reinforces a familiar downcycle: Market capacity is being flushed out not only through high-profile bankruptcies but also through a steady, quiet, yet persistent drip of headcount reductions rooted in logistics contract churn.

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Source: Phaata.com (According to Freight Waves)

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