Nearly 1,000 job cuts are hitting four North Texas companies

Nearly 1,000 jobs are being cut at four North Texas companies, according to layoff notices filed with the Texas Workforce Commission.

The layoffs will take place at trucking firm Yellow Corp., logistics giant FedEx Corp., rehabilitation hospital operator Vibra Healthcare and telecommunications supplier Ericsson Inc..

Yellow Corp.

Nashville-based Yellow Corp. laid off 530 employees from its Dallas location last Friday, according to its TWC filing.

Yellow, which has been in business for nearly 100 years, was once considered a leader in transporting goods across the country. However, the company has been unable to dig itself out of nearly $1.5 billion of debt.

“Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government,” Teamsters general president Sean M. O’Brien in a statement. “This is a sad day for workers and the American freight industry.”

Much of the company’s debt originated in 2020 when Yellow took out a $700 million loan from the government as a part of a COVID-19 relief program. According to government documents, Yellow has repaid $230 million but still owes nearly another $500 million and an additional $54.8 million in interest.

Yellow informed its staff on Friday that it was ceasing operations, according to the Teamsters. If Yellow files for bankruptcy as expected, it could become the largest trucking firm failure in history.

Across the U.S., some 30,000 workers are affected by Yellow’s closure.

FedEx Corp.

Memphis-based FedEx Corp. will be laying off 280 workers from its Fort Worth location, according to its notice to the state. Layoffs will begin Sept. 23.

The move comes in the wake of changes in FedEx’s upper management as former CEO of Atlas Air Worldwide John Dietrich took over as CFO of the company on Tuesday. Dietrich said he hopes to help bring more cost-effective solutions to the transportation and e-commerce company.

“Together, we will deliver on the tremendous opportunity FedEx has to expand margins and improve returns as we build off a lower cost base, which will deliver significant long-term value for our stockholders,” Dietrich said in a statement.

Earlier this year, FedEx announced that its ground and express divisions would be consolidated as part of an overall effort to cut $4 billion from company expenses by 2024.

Ericsson

Swedish telecommunications firm Ericsson Inc. will lay off 64 employees at its U.S. headquarters in Plano on Sept. 29, according to its notice.

“This strategic change will provide added flexibility, reduce costs and simplify our operations, allowing us to operate more efficiently and better serve the changing needs of our customers,” the company said in the notice.

The company will be shutting down its U.S. field services on Oct. 1, resulting in 750 jobs being cut across the country.

In February, Ericsson announced that it would be axing 8,500 employees globally in a cost-cutting move.

“It is our obligation to take this cost out to remain competitive,” Chief Executive Borje Ekholm said in a memo to employees. “Our biggest enemy right now may be complacency.”

Vibra Healthcare

Mechanicsburg, Pa.-based Vibra Healthcare told TWC it will lay off 76 employees from its specialty hospital in DeSoto beginning Sept. 29.

Earlier this year, a Vibra hospital in Massachusetts also announced that it would be laying off 87 employees on Aug. 15 as it moves to a new location in the state.

In total, nearly 200 employees will be terminated from the company between mid-August and late September. The move comes as hospitals around the country are laying off workers due to financial and operational challenges.