Frozen Food Express Industries Inc. announced Monday, July 20, that 50 additional nondriver positions have been eliminated within the last two weeks because its truckload and less-than-truckload volumes and earnings continue to be impacted negatively by the severe economic recession.
“The company continues to experience downward pricing pressure as excess capacity continues within the transportation industry,” says Mit Stubbs, president and chief executive officer of the Dallas-based company. The company says it continues to focus on protecting its market share and to execute on its comprehensive cost-reduction initiative to reduce many of its nonvariable costs.
Including the most recent work force reduction, the company says its nondriver headcount has been reduced by about 200 positions or 23 percent since Jan. 1st. Since the beginning of the year, the company also has taken significant action to reduce many of its operating costs, including — but not limited to — suspension of its 401(k) match, reduction of standard work week hours, decrease of its recruiting efforts, early termination of equipment leases, reduction of travel expenses and streamlining existing processes.
The company says it expects to generate an operating loss in the second quarter, but that it continues to be in a strong cash position with no debt outstanding under its revolving credit agreement as of the end of the quarter.