LOS ANGELES (Reuters) – Coyote Logistics, United Parcel Service’s nonunion freight brokerage subsidiary, on Friday said it was laying off workers as rising interest rates, inflation and a resumption of pre-pandemic consumer spending patterns weaken demand for trucking services.
Chicago-based Coyote did not say how many employees would be affected. A Feb. 16 report from transportation news provider FreightWaves said 200 jobs would be eliminated.
Logistics and transportation providers like UPS, FedEx, CH Robinson, Flexport and Uber Freight added thousands of workers early in the COVID-19 pandemic, when sheltering-at-home consumers splurged on big-screen televisions, computers, patio furniture and home exercise equipment.
That demand slowed when restaurant dining reopened, travel resumed and global economies started flashing recession warnings, and now those same companies are slashing jobs.
UPS is also cut union jobs in its mainstay delivery service. Affected unionized workers with seniority have the option of leaving the company or taking a different role, which could mean that employees with less seniority lose their positions.
The UPS cuts come as the company and the Teamsters union representing roughly 350,000 UPS drivers, loaders, package sorters and other employees gear up for national labor contract talks beginning on April 17. The current UPS contract expires on July 31.
“We are working with our local unions to assess the full situation (regarding layoffs). UPS will have to answer should they take any actions that impact our members’ livelihoods,” the union said in an emailed statement on Friday.
(Reporting by Lisa Baertlein; Editing by Sandra Maler)
