Logistics company C.H. Robinson Worldwide Inc. (NYSE: CHRW) has laid off about 650 workers in the past week, signaling slower demand for freight transportation.
The Eden Prairie, Minn.-based company confirmed reports of job cuts, which amount to roughly 3.6% of its total workforce, to trade publication Freight Waves. C.H. Robinson didn't say which areas of the company where affected.
"These are not easy decisions, because we recognize the significant contribution of the impacted employees," the company said in a statement. "We have tried to approach this with as much respect and empathy for our former colleagues as possible and are providing transition assistance.”
The moves come amid signs of a slowdown in consumer spending and other activity after the U.S. Federal Reserve raised interest rates to combat inflation. CNBC reported last month of big declines in warehouse shipments and ocean freight orders.
Both those metrics filter to C.H. Robinson's business, which manages trucking, air freight and other types of shipping for corporate customers. A week ago, it reported lower revenue and profits, and it indicated that workforce cuts could be coming.
"We likely we got ahead of ourselves in terms of head count," said CEO Bob Biesterfeld during a conference call with analysts, describing C.H. Robinson's recent hiring in its freight-forwarding business. "We certainly did not expect that the market was going to come down as rapidly as it did.."
The company has roughly 2,100 employees in the Twin Cities metro area.
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