Chattanooga, Tennessee-based Lipsey Logistics has confirmed that it was forced to cut a number of jobs as the result of a “constrained and declining freight market.”
“We have taken [the] initiative for restructuring, controlling cost and mainstreaming efficiencies, which included a reduction of our workforce,” Kendal Helms, vice president of human resources for Lipsey Logistics, said in a statement to FreightWaves on Monday.
A source familiar with the layoffs said an estimated 20 jobs were cut. Helms declined to disclose the exact number of employees affected or the percentage of the company’s workforce that was part of the layoffs.
“The reduction in force was based on business necessity, and our initiatives kept the loss of employees minimal in comparison to other companies in our industry,” Helms said.
FreightWaves’ Rachel Premack reported in February that freight brokerages had seen massive cuts of around 1,000 jobs in the first two months of the year. That number continues to rise because of record-low freight rates amid soaring operating costs.
Helms said Lipsey plans to support the employees who were impacted by the recent layoffs.
“We have always valued our employees and deeply regret the need for this action,” she said.
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