XPO Logistics Closes Seven Truck Terminals Company extends cost-reduction effort at former Con-way Freight operation by shutting service centers in remote locations
By PAUL PAGE
Feb. 4, 2016 1:41 p.m. ET
XPO Logistics Inc. has closed seven freight terminals in the former Con-way Inc. trucking network, extending cost reductions at the business it acquired last fall.
The shutdowns in what XPO said were remote locations follow the elimination of 190 jobs last week in what the company said were back-office areas of the former Con-way Freight less-than-truckload operation, which sells delivery services on trucks for multiple customers.
“We’re continuing to migrate to a more efficient LTL organization, with better network efficiency and greater utilization of our capacity,” XPO said in a statement. “As part of our planned restructuring, we decided to close seven service centers in remote areas without exiting any markets.”
The company declined to identify the locations of the closed terminals.
XPO said shipments from the customers near the sites would be processed through other, larger facilities, making those operations more efficient. “All of our LTL customers have continuity of service during the transition,” the company said.
The $3 billion Con-way purchase completed last October capped a rapid series of acquisitions in recent years that have built XPO into a $14 billion operation. XPO Chairman and Chief Executive Bradley Jacobs has said the company is taking a break from its buying spree to focus on integrating the businesses it acquired last year, including Con-way and French trucker Norbert Dentressangle.
Shares in XPO, which reports full-year 2015 earnings on Feb. 23, were up more than 11% in trading Thursday, to $24.24.
Write to Paul Page at paul.page@wsj.com