GXO Plans 400 More Layoffs This Year

GXO Logistics, a major warehouse operator based in Greenwich, Connecticut, has laid off over 500 employees across the U.S. this year and is set to cut nearly 400 additional positions at various facilities due to closures. The layoffs are attributed to shifting business needs from their customers, which the company indicated can affect certain operations. Despite these cuts, GXO remains a leading logistics firm, operating in 27 countries with a workforce of around 87,000 permanent and temporary employees. GXO's financial performance shows an increase in revenue to approximately $8.5 billion for the first nine months of the year, which is an 18% rise compared to the same period last year. However, profits have significantly declined, primarily due to legal settlements and increased operational costs. Looking forward, the company is preparing for a peak season marked by a recovery in inventory levels and heightened demand for e-commerce logistics. In addition to ongoing operations, GXO has strategically expanded, including a new distribution center in Hagerstown, Maryland, and the acquisition of the UK-based logistics firm Wincanton for nearly $1 billion. In the transportation sector, the trend of layoffs and facility closures is concerning, indicating a potential recalibration in response to changing market demands. As e-commerce continues to dominate consumer behavior, logistics companies must remain agile, reassessing their operational footprints while investing in technology and infrastructure to meet future demands. The market landscape is shifting, and firms like GXO will need to innovate and adapt rapidly to sustain their competitiveness.