5,183 Freight and Warehouse Workers Laid Off Across 20 States
FreshRealm bankruptcy, 3PL contract losses, and supply chain restructuring drive cuts at warehouses, trucking companies, and automotive suppliers nationwide.
More than 5,183 workers lost jobs in May 2026 as freight-related layoffs hit warehouses, trucking companies, and logistics providers across at least 20 states. The cuts stem from bankruptcy filings, customer contract losses, and operational consolidations tied to softening industrial demand.
Why are freight and warehouse layoffs spiking now?
The layoffs reflect broader supply chain restructuring as shippers pull back on third-party logistics contracts and manufacturers consolidate operations. FreshRealm, a California-based ready-to-eat meal supplier for brands including Blue Apron, filed Chapter 11 bankruptcy and cut more than 1,000 workers nationwide after disruptions tied to a 2025 listeria outbreak. The company will permanently close its Tracy, California, facility June 27, eliminating 228 jobs. Another 637 employees in Linden, New Jersey, and 161 workers tied to Lancaster, Texas, operations also received termination notices.
Third-party logistics providers losing customer contracts
GEODIS filed a WARN notice in California for 238 layoffs at its Rialto warehouse beginning July 3. DSV will close a facility in Edwardsville, Illinois, resulting in up to 163 job losses after losing a customer contract. Ryder System expects to terminate 151 workers in Green Bay, Wisconsin, after a customer contract was not renewed. National Safety Apparel is shutting down its San Antonio division, affecting 68 workers.
The contract losses signal tighter shipper budgets and a shift toward in-house logistics as freight volumes remain below pre-pandemic peaks. Third-party warehouse operators face margin pressure when anchor customers pull volume or bring fulfillment back under their own roofs.
What this means for small fleets and owner-operators
Warehouse closures and 3PL consolidation reduce the number of shippers tendering loads in affected markets. A carrier running dedicated lanes into Rialto, Edwardsville, or Green Bay may see fewer available loads as those facilities wind down operations. Contract freight tied to meal-kit suppliers like FreshRealm also dries up when the shipper files bankruptcy, carriers with receivables outstanding from FreshRealm now join the creditor queue.
The layoffs also reflect the freight market's ongoing capacity correction. When warehouses cut staff and 3PLs lose contracts, the freight those facilities generated disappears from the spot and contract markets. That tightens available loads for carriers still chasing volume in those lanes. Owner-operators and small fleets should verify a carrier's active authority and operating status before taking on new broker relationships as market churn increases the risk of working with undercapitalized intermediaries.
Automotive and manufacturing cuts add to freight headwinds
The 5,183 total includes cuts at automotive suppliers and manufacturers, which reduce the industrial freight base carriers depend on for steady contract lanes. When a parts supplier or food processor shuts a plant, the inbound raw material loads and outbound finished-goods shipments both vanish. Small fleets running regional manufacturing lanes should track WARN notices in their operating states to anticipate volume drops before they hit the load board.
The May 2026 layoff wave follows a string of trucking bankruptcies and fleet shutdowns that began in late 2022 and accelerated through 2024. Capacity has tightened on the carrier side, but shipper demand has not rebounded fast enough to absorb the remaining trucks. The result: spot rates remain under pressure even as the number of available loads per truck stays below historical norms.
