YRC Freight eliminates management layer in re-organization of field operations

An operational restructuring at YRC Freight, the national less-than-truckload (LTL) unit of YRC Worldwide Inc. has resulted in management layoffs in seven U.S. cities through the removal of one of the unit's organizational layers, according to an internal memo and industry sources.

In the Feb. 1 memo, YRC Freight said that, effective yesterday, it had combined the positions of division vice presidents and area operations directors into a new classification called area vice president. There are now 13 area vice presidents in the U.S. and one each in Canada and Mexico. The areas have been organized into two geographic divisions, each headed by a senior vice president, according to the memo. The east division is headed by Howard Moshier and the west division by Mitch Lilly, according to the memo.

The memo acknowledged that a management layer has been eliminated, a move that has resulted in an undetermined number of layoffs. It did not disclose the types of positions affected or their locales. However, industry sources said managers have been laid off in Memphis; Buffalo, N.Y.; Chicago; Baltimore; Philadelphia; Carlisle Pa.; and Salt Lake City.

In the memo, YRC Freight executives said that "streamlining the field operations structure" would "improve our ability to remain focused on safety and drive the effectiveness to benefit our customers and employees."

In a statement yesterday, Overland Park, Kan.-based YRC Worldwide said the company is making "normal rightsizing adjustments" as a result of advances it has made in processes and technology. "There is nothing unusual about the decisions we have made or will make in the future," according to the statement.

YRC will disclose its fourth-quarter and full-year 2016 results after the financial markets close Monday.