Freight distress persists as logistics layoffs top 1,000, bankruptcies mount

The U.S. transportation and logistics industry is grappling with significant financial distress, as over 1,000 job cuts have been announced and a series of bankruptcy filings have emerged. According to layoff notices compiled by FreightWaves between late October and November 11, at least 10 companies are reducing a combined total of 1,021 positions across California, Ohio, Illinois, Pennsylvania, Wisconsin, Connecticut, and New York. Several warehouse closures and job losses are scheduled to take effect in early 2027.

Among the affected companies, DSV Contract Logistics LLC plans to eliminate 175 jobs at its Illinois facility due to a lost contract. National Distribution Centers LLC has announced the closure of its Perris, California facility, resulting in 167 job losses. Groveport, Ohio-based company CEVA Supply Chain Inc. is cutting 120 positions at its Ohio facility, and S&S Worldwide has announced 70 layoffs in Colchester, Connecticut.

Worldwide Flight Services Inc. filed a WARN notice covering 59 permanent layoffs at its San Diego facility, while Amazon plans to close its La Puente fulfillment center in Southern California, eliminating 94 jobs.

The layoffs extend beyond warehouses and distribution centers, with Oshkosh Corp. eliminating approximately 80 salaried positions in its transport segment and S.S. Delivery Systems LLC filing a closure notice affecting 49 workers in Rochester, New York. Chapter 7 liquidation and Chapter 11 bankruptcy protection have been sought by various trucking companies and freight-related businesses, including Winners Trucking Inc., Bruin Logistics LLC, and JYM Trucking Inc. These filings typically involve liquidating nonexempt assets (Chapter 7) or reorganizing debts (Chapter 11).