U.S. Xpress Announces Restructuring Plan

U.S. Xpress Enterprises is reorganizing under a plan that will split the company into two divisions — Dedicated Services and Highway Services — in a bid to curb costs. 

According to a Sept. 7 release, the Highway Services division will encompass the company’s legacy over-the-road (OTR) operations, Variant, and its brokerage services. Meanwhile, the Dedicated Services division will handle U.S. Xpress’s dedicated freight operations. 

This restructuring also comes with planned layoffs for the fourth quarter of 2022, according to the release. While U.S. Xpress did not specify the number of affected employees, it said their total annualized wage costs amounted to $20 million. Also as part of the restructuring, the company is terminating the lease on its Atlanta office, which it expects will save it another $2 million per year. 

In the release, U.S. Xpress President and CEO Eric Fuller said this reorganization will help the business with network planning and should not affect its service. 

“Our vision to build a digitally enabled OTR fleet was ambitious and achieved certain successes, but with the freight market softening, it is important that we right size our cost structure for the current environment,” Fuller said.