Roadrunner Transportation Systems (No. 31, CCJ Top 250) announced Monday it will downsize its dry van business due to a lack of profitability in the segment.
In addition to dumping more than half of its dry van-focused tractors and trailers, the company says it will close five terminal locations and eliminate 450 positions — about 10 percent of the company’s workforce. Roadrunner says it expects to incur a one-time cost of between $12 million and $16 million in the restructure.
The company says it expects to complete the process by the end of the year, with the planned layoffs to come in the next 60 to 90 days.
“The decision to downsize the dry van business is a significant step in executing our strategy to emphasize our value-added logistics and asset-light LTL segments and increase our returns on invested capital,” said Curt Stoetling, Roadrunner’s CEO. “We factored in the impact of this downsizing as part of the strategic review of our truckload segment. We believe downsizing the dry van business will improve operating margins and cash flow, reduce lease obligations and debt, improve internal controls and allow greater focus on the significant value-creation opportunities within our other businesses.”