WASHINGTON —U.S. trucking firm Yellow has laid off a large number of workers as the company copes with a cash crunch and weighs options including an imminent bankruptcy filing, people familiar with the actions told the Wall Street Journal on Friday, July, 28.
The layoffs include members of the company’s sales force, business operations and technology departments, the report said, adding that Yellow’s unionized drivers and freight handlers weren’t part of the downsizing.
The third-biggest U.S. trucking company, which has been in ongoing negotiations with union of Teamsters-represented workers regarding worker benefits and pension accruals, averted a threatened strike on Sunday.
Yellow has not yet responded to inquiries about the company’s situation.
In a memo issued to local unions representing teamsters working at Yellow Corp.’s YRC Freight, Holland, New Penn and Reddaway, Teamsters officials told employees on Friday, July 28, that Yellow’s survival looks “increasingly bleak.”
“As we explained in yesterday’s communication, Teamsters National Freight Industry Negotiating Committee and the International Brotherhood of Teamsters have been working hard to help find a solution to fix Yellow’s financial mess and to help it secure financing to enable it to continue in operations,” according to the memo. “While we are continuing to do so, we have no good news to report, and the likelihood that Yellow will survive is increasingly bleak.”
The memo further states that “Yellow continues to clear its system, and it appears to be laying off personnel and closing entire terminals across the country. All Yellow employees should, in our opinion, prepare for the worst, as Yellow appears to be headed to a complete shutdown within the next few days. We recommend that all Yellow employees who have personal belongings and tools at the terminals should take them home today. That way, in case Yellow does shut down over the weekend or next week, the employees’ property will not get lumped in with Yellow’s property and get locked up in a bankruptcy or liquidation proceeding that could result in the employees not recovering their personal property.”
Reuters contributed to this report.
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