A giant US company now declares an unexpected bankruptcy, resulting in the closure of two of its subsidiaries and mass layoffs.
Major shipping company Universal Logistics Holdings (ULH) will permanently close two of its subsidiaries and lay off 677 employees, notices filed with the State of Michigan said, according to FreightWaves.
The Warren, Michigan company’s subsidiary Universal Dedicated of Detroit will close and lay off 230 truck drivers, while Logistics Insights Corp. will shutter and lay off a total of 447 workers, including 164 warehouse workers, 212 forklift operators, 26 dock workers and 45 clerical employees.
Universal Logistics gave no reason for shutting down the two subsidiaries, reports TheStreet.
Logistics Insights provides value-added logistics solutions to the automotive, aerospace, manufacturing and retail industries, as well as dedicated truckload, expedited and freight forwarding services to customers throughout North America, according to the Universal Logistics website.
Universal Dedicated of Detroit operates an auto parts warehousing and logistics facility. Both subsidiaries are based in Detroit.
Parent company Universal Logistics Holdings, whose subsidiaries employ about 10,000 workers in total, is a holding company which owns subsidiaries that provide a variety of customized transportation and logistics solutions throughout the United States and in Mexico, Canada and Colombia.
Its subsidiaries offer a broad array of supply chain services, including truckload, brokerage, intermodal, dedicated and value-added services.
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Also Read: Three Massive Bank Branches Are Now Closing in California
Other Economy News Today
A popular US bank now reaches a whopping 7,000 layoffs, up 2,000 from its original plan to cut 5,000 jobs.
Job cuts tied to Citi Bank’s reorganization have now totaled 7,000, up from the 5,000 the bank initially targeted, CEO Jane Fraser confirmed Friday.
Last month marked the end of the Citi’s massive overhaul, Fraser said during a first-quarter earnings call, leaving the bank “nimbler” and with “frankly, much less bureaucracy and needless complexity.”
Ultimately, about 7,000 positions were cut – more than the bank initially outlined – generating a whopping $1.5 billion of annual expense savings, she said.
The simplification of the business included eliminating layers of management and cutting a number of committees in certain geographies, among other aspects.
“I’m much closer to the businesses and the clients,” Fraser said.
“It makes it much easier for [CFO] Mark [Mason] and I and the rest of the team to run the bank like an operator versus the head of the company.”
During the quarter, Citi wrote down $225 million in restructuring charges mainly related to the reorganization and $258 million of repositioning costs largely related to “efficiency efforts,” Mason said.
In total, the bank has incurred about $1 billion in restructuring costs over the last two quarters, Mason said.
He added that Citi will continue to invest in its tech modernization “to ensure we continue to get it right.”
The CFO also noted Citi executives expect the lender’s capital requirements to drop over time based on the reorganization and the benefits envisioned with Citi’s transformation.
Citi reported net income of $3.4 billion for the quarter, on revenues of $21.1 billion, according to an earnings release.
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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
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