LR-based logistics company to cut 450 jobs; 30 in state

Little Rock-based Rich Logistics, a division of Roadrunner Transportation Systems, is cutting about half its workforce and closing five trucking terminals as part of downsizing efforts, the company confirmed Tuesday.

The company is cutting about 450 jobs, with most of them truck drivers, over the next 60 to 90 days. In Arkansas, about 30 jobs will be lost, mostly in administrative posts, according to Shannon Everett, president of Rich Logistics. The company’s fleet of tractors and trailers will be reduced by more than 50%.

“My thoughts and prayers go out to our employees and their families that have been impacted by this restructuring, a decision that we feel was necessary given the growing forces that are currently being exhibited throughout the NAFTA trade lanes,” Everett said.

The move includes closing trucking terminals in Kansas City and St. Louis, Mo.; Brownsville and Laredo, Texas; and Burton, Mich. After the downsizing, Rich Logistics will run seven terminals, including one in Mexico.

According to a release from Illinois-based Roadrunner, the move impacts its unprofitable dry van business which is part of the company’s truckload segment. The move is expected to reduce lease obligations and debt and should be complete by the end of 2019. The company plans for a $12 to $16 million one-time charge as a result of the downsizing.

Shares of Roadrunner closed at $9.64 on Tuesday, down 72 cents, or nearly 7%, in trading on the New York Stock Exchange. Shares have traded as low as $7.30 and as high as $23.75 over the past year.

Roadrunner purchased Rich Logistics in early 2014 in a deal estimated to be worth $48 million.