The freight and logistics sector continues to face mounting pressure, with companies announcing plans to eliminate at least 1,222 jobs between July 10 and July 24 as warehouse operators, final-mile delivery providers and manufacturers streamline their operations. At the same time, 10 transportation and freight-dependent businesses sought Chapter 11 bankruptcy protection, highlighting the ongoing challenges across the supply chain.
The largest workforce reduction came from Amazon, which revealed plans to temporarily shut down its one-million-square-foot fulfillment center in Port St. Lucie, Florida. The facility will close on Sept. 17 to undergo a $200 million renovation, resulting in the temporary layoff of 494 employees. Amazon expects the site to reopen in late 2028, making the job cuts temporary rather than a permanent withdrawal from the market.
Temco Logistics also announced significant reductions as it phases out flatbed delivery services nationwide. The final-mile provider will eliminate 223 positions across three states, including 92 jobs in Lithonia, Georgia, 71 in West Dallas, Texas, and 60 in Hialeah, Florida.
Freight Handlers Inc. (FHI) filed a Worker Adjustment and Retraining Notification covering 168 employees at five Publix Super Markets distribution centers in Florida. The layoffs are permanent and follow the company’s loss of its third-party unloading contract.
Additional workforce reductions were announced by several logistics and manufacturing companies. CJ Logistics America will eliminate 89 positions following the closure of its University Park, Illinois, facility, while GEODIS plans to permanently close its Redlands, California, operation, affecting 81 employees starting Sept. 3.
International Paper confirmed the permanent closure of its Carrollton South packaging plant in Texas around Sept. 14, impacting 64 workers, including 45 hourly employees and 19 salaried staff. The company said the decision is part of its ongoing network optimization strategy under CEO Andy Silvernail.
Niagara Bottling will shut down its Woodridge, Illinois, plant, affecting 57 employees, while GXO Logistics is reducing its workforce by 46 positions as part of permanent facility closures in San Bernardino, California, with the changes scheduled to take effect on Sept. 18.
Although the combined announcements total 1,222 affected employees, several notices indicate that the layoffs will occur later this year, meaning not all workers have already left their positions.
Wave of Chapter 11 filings continues
Alongside the layoffs, 10 freight-related companies entered Chapter 11 bankruptcy proceedings during the same period. Seven of these businesses operate within trucking, courier or logistics services, while the remaining three are manufacturers or distributors that rely heavily on freight networks.
Among the most significant filings was Eagle Logistics LLC, a general freight carrier based in Wayne, New Jersey. The company sought bankruptcy protection on July 21, reporting liabilities between $1 million and $10 million while listing assets of no more than $50,000.
Eagle Logistics stands out because of its size compared with the other carriers involved. The company operated 151 power units, employed 242 drivers and managed a dedicated U.S. Postal Service route between Jacksonville, Florida, and Jersey City, New Jersey. Court documents did not specify the reason behind the filing.
Power Lane Logistics Distribution & Warehousing Inc., headquartered in Tracy, California, also filed for Chapter 11 on July 22. The warehousing and transportation provider reported assets and liabilities between $1 million and $10 million. While its USDOT registration remains active, its federal operating authority is currently listed as not authorized.
Other transportation companies seeking Chapter 11 protection include Royal Express Delivery Inc., a California courier service that historically operated 18 vehicles and employed 22 drivers; Rambo Transport Inc., a Bakersfield-based carrier with five power units and eight drivers; C-M Transport LLC, a Michigan livestock and general freight hauler operating five power units with four drivers; Redefined Transportation Inc., an intermodal drayage carrier based in Long Beach operating 17 tractors and 28 chassis; and TeamSeven Logistics/Chosen Spirit, a Wisconsin carrier operating a single truck with one driver.
Court filings generally did not identify the operational or financial conditions that led these companies to seek bankruptcy protection. Fleet sizes, safety records and operating authority information provide context but do not establish the causes of the filings.
Manufacturers and distributors also restructure
Financial difficulties extended beyond transportation providers, with three freight-dependent businesses also entering Chapter 11 proceedings.
Tradavo Inc., a wholesale supplier serving campground and hospitality retailers based in Lakewood, Colorado, filed on July 16. The company reported assets between $100,000 and $500,000 and liabilities ranging from $1 million to $10 million.
Los Angeles apparel manufacturer and wholesaler Collabow Inc. filed on July 14, listing both assets and liabilities between $1 million and $10 million. The company had about 45-50 full time employees and sold its products through wholesale and e-commerce channels.
World Food LLC, a prepared-food manufacturer based in Kissimmee, Florida, filed for Chapter 11 on July 13. The company reported assets below $50,000 and liabilities between $500,000 and $1 million. Court documents did not specify the reason for the filing. Before its bankruptcy, the business was estimated to employ between 160 and 200 people.
The latest layoffs and bankruptcy filings demonstrate that financial pressures continue to spread across the freight industry, extending well beyond small trucking firms. Warehouse operators, logistics providers and freight-dependent manufacturers are increasingly consolidating operations, closing facilities and restructuring as they adapt to a challenging market environment.
