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C.H. Robinson Worldwide Inc. is reducing headcount amid the elimination of 650 positions as part of an effort to align its overall cost structure with market conditions, the company confirmed Nov. 10.
The Eden Prairie, Minn.-based logistics firm is in the process of discussing the matter with impacted employees. The company also is providing transition assistance.
C.H. Robinson executives signaled plans to reduce its workforce when it released it latest financial results.
“As we said last week in our Q3 earnings, changes in market conditions, coupled with many successful endeavors on our digital road map directed at scaling our model to be more efficient, mean we are in a position to reduce our overall cost structure,” Chief Communications Officer Duncan Burns told Transport Topics. “As a result, we’re eliminating some positions at C.H. Robinson.”
Burns
C.H. Robinson said in its Nov. 3 earnings report that quarterly operating expenses had increased 12.4% year-over-year to $599.6 million. The majority of that came from personnel expenses, which increased 9.4% to $437.5 million. The report noted that the increased personnel expenses were primarily due to a 13% average increase in employee headcount.
“These are not easy decisions, because we recognize the significant contribution of the impacted employees,” Burns said. “We have tried to approach this with as much respect and empathy for our former colleagues as possible and are providing transition assistance. We are committed to ensuring that our customers, carriers and partners continue to receive our full focus and that we deliver value to them through this and going forward.”
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C.H. Robinson executives noted on the earnings call that scalable digital processes will enable the company to decouple volume and headcount growth while driving increased productivity. The company said it also is focused on opportunities to automate or make self-serve processes, including increasing the digital execution of all touch points in the life cycle of a load.
C.H. Robinson ranks No. 1 on the Transport Topics Top 100 list of the largest logistics companies in North America.
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