GXO Plans 400 More Layoffs This Year

(GXO Logistics)

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GREENWICH, Conn. — Warehouse operator GXO Logistics this year has laid off more than 500 employees in the U.S., while it plans to cut nearly 400 more positions across two sites within the next couple of months, according to a review of public records.

The Greenwich-headquartered Fortune 500 company’s layoffs and facility closings have affected workers in several states, according to Worker Adjustment and Retraining Notification Act notices sent to public officials.

• Groveport, Ohio: In January, the company laid off 192 employees, as a result of the facility’s closing.
• Ames, Iowa: In February, the company laid off 46 employees, as a result of the facility’s closing.
• Fairburn, Ga: In March, the company laid off 69 employees, as a result of the facility’s closing.
• Memphis, Tenn.: Across March and April, the company laid off 211 employees, as a result of the facility’s closing.
• Avon, N.Y.: During a 14-day period starting Dec. 31, the company plans to lay off 41 employees, as a result of the facility’s closing. The WARN notice lists a “contract expiration” as a reason for the shutdown.
• Bloomington, Calif.: During a 14-day period starting on Dec. 31, the company plans to lay off 343 employees, as a result of the “substantial cessation” of the facility.

In response to an inquiry from CT Insider about the reasons for the layoffs and closings, a GXO spokesperson provided a written statement that said, “periodically our customers make changes to their business that can impact operations at some sites. Wherever possible we work with our employees to support their transition to other roles within the organization or to other opportunities in the area when the need arises.”

In Connecticut, GXO has two facilities — in North Haven and Windsor — as well as its headquarters in the northwest corner of Greenwich. The company has approximately 350 employees based in Connecticut, including about 40 based at the headquarters.

The company has not sent any layoff notices this year to the Connecticut Department of Labor.

Despite the layoffs, GXO remains one of the world’s largest logistics companies. As of Dec. 31, 2023, the company operated in 27 countries, with a total of approximately 87,000 full-time and part-time employees, as well as about 44,000 temporary workers. At that point, 25% of its workforce was based in North America.

GXO ranks No. 5 on the Transport Topics Top 100 list of the largest logistics companies in North America and No. 4 on the dry storage warehousing sector list.

In the first nine months of this year, GXO’s revenue totaled about $8.5 billion, up about 18% year over year. But the company’s profit of $34 million in the first nine months of this year was down from $156 million in the same period last year. The profit decrease was mainly due to $59 million in expenses that were recorded to recognize the settlement of a lawsuit that pertained to a dispute between the company and a customer about the startup of a warehouse in 2018. The company has also incurred higher transaction-and-integration costs this year.

“Looking ahead to the fourth quarter, we’re ready for the peak season,” GXO CEO Malcolm Wilson said during a quarterly earnings call with investment analysts on Nov. 5. “We’ve mentioned that we saw the bottom of the inventory cycle in the fourth quarter of last year. As we head into this year’s peak, we’re seeing inventory levels returning to normal, and demand for e-commerce capacity is accelerating.”

Among other recent developments, GXO opened in March a 2.1-million-square-foot distribution center in Hagerstown, Md., that exclusively serves Stamford-based Conair, which makes personal-care products, small kitchen appliances and cookware.

In April, GXO acquired Chippenham, England-based logistics firm Wincanton for nearly $1 billion.

Based on its 2023 revenue, GXO ranked No. 402 in this year’s edition of the Fortune 500 list of the largest U.S. corporations.

In 2021, GXO was spun off from its neighbor and fellow Fortune 500 company, freight-transporter XPO.