Roadrunner to downsize dry van business, cut 10% of total workforce
Roadrunner announced it will downsize its unprofitable dry van business, which is part of the company's truckload segment. The downsizing includes reducing dry van company tractor and trailer fleets by over 50%, closing five terminal locations and eliminating approximately 450 positions. Employees subject to the workforce reduction will receive either severance or a 60-day notice. In conjunction with the downsizing activities, the company expects to incur one-time pretax operations restructuring costs of $12M-$16M, excluding the gain or loss on the sale of equipment and the write-down of assets. The downsizing activities are expected to reduce lease obligations and debt and be substantially complete by year-end 2019, with workforce reductions effective over the next 60 to 90 days. The reduction in force represents approximately 10% of the company's total workforce.