YRC Worldwide Inc. will cut an undetermined number of jobs in the next six months as part of its effort to reduce costs by $100 million, Chairman Bill Zollars said Friday.
The Overland Park-based transportation company announced its intention to cut costs when it reported Thursday that a weak domestic shipping market had taken a 57.5 percent bite out of its third-quarter earnings.
"With the economy in the kind of shape it's in, we've got to make sure the infrastructure we have fits the business model," Zollars said Friday.
YRC Worldwide has about 66,000 employees, including about 2,600 in the Kansas City area.
Results from subsidiaries YRC National Transportation and YRC Logistics stacked up well against overall industry performance, Zollars said in Thursday's release, but YRC Regional Transportation performed "well below expectations" because of consumer-mix challenges and integration issues.
Yellow Corp. completed its $1.05 billion purchase of Roadway Corp. on Dec. 11, 2003. The resulting company, Yellow Roadway Corp., changed its name to YRC Worldwide on Jan. 3, 2006.
The company said in its earnings release that Jim Staley, president of YRC Regional Transportation, will retire Dec. 31 after 37 years in the industry. Keith Lovetro, who joined YRC Regional on Oct. 1 as senior vice president and COO, will take his place, reporting to Mike Smid.
The company named Smid as North American Transportation president, a newly created role. Smid, who was Roadway president and then president of YRC National Transportation when it was formed in January, will be responsible for the asset-based operating companies of YRC Worldwide.
These changes are part of YRC Worldwide's efforts to turn around YRC Regional Transportation's performance, Zollars said.
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