Jacobs said earlier this month that XPO had received three unsolicited offers for Con-way Truckload. He has said the unit might have value as a hauler of brokered freight. was bought by Con-way in 2007 for $750 million and which today might fetch a little more than half that, will likely be sold for what Jacobs believes is the right price. Con-way Truckload, which as Contract Freighters Inc. Menlo and Con-way Multimodal will be immediately integrated into existing XPO Logistics units operating in identical segments. Part of that will come from cost cuts.Ĭon-way's four operating divisions-Con-way Freight truckload carrier Con-way Truckload third-party logistics-services provider Menlo Worldwide Logistics and freight broker and intermodal marketing company Con-way Multimodal-have been rebranded as XPO Logistics. XPO declined comment other than a statement from Jacobs in announcing the deal's close that "we're moving quickly to eliminate redundancies and leverage our scale to better serve our more than 50,000 customers." At the time the deal was announced, XPO pledged to improve Con-way's operating profit by up to $420 million over the next two years. The cuts, which had been expected internally for weeks, include employees in administration, operations, sales, and information technology, according to the individual. The requirement could result in an exodus of top-level employees, who may wish to stay, but may worry they will find their hands tied should they subsequently find opportunities elsewhere in the industry. It is also unclear whether there will be further rounds of cutbacksĮxecutives who remain with XPO will be required to sign a two-year noncompete agreement, the individual said. The individual said that Con-way's drivers are likely not included in the layoffs. Jacobs, Greenwich, Conn.-based XPO's chairman and CEO, met in Ann Arbor with leaders of the project and came away dubious that the benefits of the work justified the size of the current headcount, according to the individual.
Shortly after the deal was announced in early September, Bradley S. Included in the cuts will be an entire layer of Con-way upper management, whose elimination will save its new owner about $28 million a year the managerial segment was not adding much value to the organization, according to the individual.Īlso on the chopping block is an 80-person group devoted to developing and implementing "lean" management principles, an ambitious efficiency program that Con-way has championed for years. Between 2,500 and 3,000 employees work at both locations, the individual estimated. XPO will cut more than 10 percent of Con-way's workforce at Ann Arbor and at its Portland, Ore.-based technology center, according to an individual familiar with the situation. that the bloodletting began at Con-way's headquarters in Ann Arbor, Mich., and elsewhere. announced today that it had finalized its $3 billion acquisition of trucking and logistics provider Con-way Inc.
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