Supply Chain Cuts 1,222 Jobs as 10 Freight Firms File Bankruptcy

How many freight jobs were cut in the last two weeks?

Supply chain providers disclosed plans to eliminate at least 1,222 jobs between July 10 and July 24, with warehouse operators, delivery providers, and manufacturers consolidating facilities and adjusting networks. Ten transportation, distribution, and freight-dependent businesses filed Chapter 11 bankruptcy protection during the same period.

Amazon accounted for the largest single announcement, planning to temporarily close its 1 million-square-foot fulfillment center in Port St. Lucie, Florida, and lay off 494 employees while the property undergoes a $200 million renovation. The facility is scheduled to close September 17 and reopen in late 2028.

Temco Logistics disclosed 223 layoffs across three states as the final-mile provider discontinues flatbed delivery operations nationwide. The company plans to cut 92 positions in Lithonia, Georgia, 71 in West Dallas, and 60 in Hialeah, Florida.

Freight Handlers Inc. filed a Worker Adjustment and Retraining Notification notice covering 168 employees at five Publix Super Markets distribution centers in Florida. The permanent layoffs follow the loss of FHI's third-party unloading contract.

Which carriers filed bankruptcy?

Eagle Logistics LLC, a Wayne, New Jersey-based general freight carrier, filed for protection July 21 with liabilities estimated between $1 million and $10 million and assets of no more than $50,000. The company operated 151 power units and 242 drivers and ran a dedicated U.S. Postal Service team route between Jacksonville, Florida, and Jersey City, New Jersey. The filing is notable because Eagle Logistics is substantially larger than the other carriers in the bankruptcy group.

Power Lane Logistics Distribution & Warehousing Inc. filed Chapter 11 in California on July 22. The Tracy-based warehousing and transportation provider listed both assets and liabilities between $1 million and $10 million. Its federal operating authority was listed as not authorized, although its USDOT registration remained active.

Seven trucking, courier, or logistics businesses filed Chapter 11 petitions during the period, along with three freight-dependent manufacturers and distributors. Court filings generally did not identify the specific business conditions that caused the companies to seek bankruptcy protection.

What the facility closures mean for capacity

International Paper said its Carrollton, Texas, packaging plant will permanently close around September 14, affecting 45 hourly workers and 19 salaried employees. The company attributed the move to an ongoing network optimization strategy under CEO Andy Silvernail.

GEODIS plans to close its facility at 1950 Palmetto Ave. in Redlands, California, eliminating 81 positions beginning September 3. GXO's San Bernardino reductions are scheduled for September 18, while Niagara Bottling's Woodridge, Illinois, filing covers 57 employees affected by a plant closure.

The announcements do not necessarily mean all 1,222 employees have already been separated. Several notices list effective dates in September, while Amazon's closure is planned for September 17.

Freight-dependent businesses under pressure

Tradavo Inc., a Lakewood, Colorado-based wholesale supplier serving campground and hospitality retailers, filed July 16. The company reported assets between $100,000 and $500,000 and liabilities between $1 million and $10 million.

Collabow Inc., a Los Angeles-based women's apparel manufacturer and wholesaler, filed July 14 with both assets and liabilities estimated between $1 million and $10 million. The company was listed with approximately 45 to 50 full-time employees and used wholesale and e-commerce distribution channels.

World Food LLC, a Florida perishable prepared-food manufacturer, filed July 13 with assets under $50,000 and liabilities estimated between $500,000 and $1 million. The company was previously estimated to employ between 160 and 200 people.

What this means for small fleets

The wave of facility closures and carrier bankruptcies signals continued network rationalization across the supply chain. For small fleets, the Eagle Logistics filing is the most relevant data point: a 151-truck carrier with a dedicated postal contract still couldn't stay solvent. That's the environment. The Temco Logistics exit from flatbed final-mile delivery removes another layer of competition, but it also removes 223 jobs from the driver labor pool, which may ease wage pressure in those three markets. The September effective dates on most layoff notices mean the full impact on freight volumes and driver availability won't show up until Q4. Watch for lane-level shifts as Amazon's Port St. Lucie closure redirects Florida fulfillment traffic through other facilities.