XPO Logistics to keep HQ in Connecticut
GREENWICH — XPO Logistics is committing to keeping the remainder of its organization headquartered in Greenwich after it spins off its logistics business — a plan that highlights the Fortune 500 company’s confidence in its hometown.
The pledge will retain the largest publicly traded company headquartered in Greenwich. XPO posted 2020 revenues of about $16 billion and employs about 45,000 people in the U.S. About 600 are based in Connecticut, including approximately 75 at 5 American Lane in Greenwich’s northwest corner, its headquarters since 2017.
“Connecticut is a great place to be for XPO,” Josephine Berisha, XPO’s chief human resources officer, said in a statement. “Having our headquarters in Greenwich helps us attract world-class talent from the area, while
serving as an attractive destination for professionals all over the world who relocate to join our team.”
For Greenwich, the commitment of the No. 196 company on last year’s Fortune list reinforces its status as a corporate hub. At the same time, it will help cushion the blow of Disney’s shutdown of Blue Sky Studios, which was coincidentally based at 1 American Lane. The closing of Blue Sky was expected to result in 469 layoffs, the company told the state Department of Labor in February.
XPO’s continued presence will also boost the state’s coffers. The company paid $8 million last year in state income taxes, compared with $3 million in 2019 and $6 million in 2018, according to its 10-K annual report.
“The decision of XPO Logistics to keep their headquarters in Greenwich is welcomed by our town and residents. We appreciate their faith in and loyalty to our town,” said Greenwich First Selectman Fred Camillo. “Greenwich has the amenities that really appeal to companies like XPO, attributes that include a great location, proximity to big cities, an educated citizenry, beautiful shoreline and countryside, a well-run and active community local government and a very civic-minded and welcoming population.”
Last December, XPO announced its plan to split into two separately run and publicly traded companies, a decision reached after it had earlier considered the sale of key businesses.
XPO intends to retain its global transportation operations — which are primarily
truck brokerage and “less-than-truckload” shipping services — while spinning off its global contract-logistics business into a separate company known as GXO Logistics, which will be headquartered in London.
“Both businesses will have greater flexibility to tailor strategic decision-making and capital allocations to their end-markets, with the benefit of strong positioning as customer-focused innovators,” XPO CEO and Chairman Bradley Jacobs said in a statement when the announcement was made. “We currently believe that this spin-off is the most effective way to unlock significant value for our customers, employees and shareholders.”
After the spin-off is completed, Jacobs will continue to serve as CEO and chairman of XPO and also become chairman of GXO’s
board.
While the company is advancing with the spin-off plan, it noted in the February announcement of its quarterly and annual financial results that “there can be no assurance that a spin-off will occur or, if one does occur, of its terms or timing.”
In addition to the headquarters, XPO operates a “last mile” hub for heavy goods and a less-than-truckload terminal in Bridgeport; a less-than-truckload terminal in Meriden; last-mile hubs in Norwich, Wallingford and Windsor; and logistics facilities in North Haven and Windsor.
Last week, the company announced it was hiring in North America for approximately 750 commercial truck-driver jobs and 700 dockworker positions for its less-than-truckload business. Ten of those positions will be based in Connecticut.
There were 25 Connecticut-headquartered companies on last year’s Fortune 1,000 list. After XPO, insurer W.R. Berkley and electronic trading provider Interactive Brokers Group are the next two-largest firms headquartered in Greenwich, respectively ranking No. 402 and No. 862.
State legislators are concerned about the future of the only one in that group based in Hartford — insurer The Hartford, which ranked No. 160 — after the company rejected last month a $23 billion acquisition offer from insurance multinational Chubb.
Another on the list, No. 916-ranked People’s United Financial — the parent company of Bridgeport-based People’s United Bank — announced in February its agreement to be acquired for $7.6 billion by Buffalo, N.Y.based M&T Bank.