Truck brokerage giants have been forced to lay off hundreds as the coronavirus slams trucking – here's a list of the biggest job cuts so far in 2020

truck driver Photo by Caroline Brehman/CQ-Roll Call, Inc via Getty Images/Pool

In 2020, six major brokerages have had to lay off or furlough employees.
Some cited the coronavirus, which has pushed trucking rates to its lowest numbers since 2009.
Others began layoffs before the virus started to slam the US and the domestic trucking market.
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In January, a leading freight analyst at Bank of America forecasted that 2020 would usher in the "broker wars."

Big names like C.H. Robinson would duel with techy upstarts like Uber Freight to see who would be able to control the freight-brokerage market — the sometimes costly, cumbersome process in which truck drivers are matched with retailers and manufacturers to move their goods.

That forecast ended up prescient for reasons that no one predicted. The coronavirus pandemic has dropped freight rates to their lowest numbers since 2009, and has pushed down how much revenue these brokers can depend on.

Several brokerages have been forced to lay off workers before the coronavirus, while others have had to cut jobs because of the virus' impact on freight.

Here's a list of the biggest layoffs so far, in alphabetical order.

Contact rpremack@businessinsider.com if you have more information about layoffs in the trucking industry.

Arrive Logistics — 110 employees

Courtesy of Arrive Logistics

Arrive Logistics, an Austin, Texas-based freight brokerage, reduced its workforce by 10% on April 4. Of the 110 who were affected, 35 were put on furlough and 75 were permanently laid off.

These employees all received severance packages, medical plan stipends, and assistance to find a new job within logistics. All non-competes were eliminated as well.

"This decision didn't come lightly because we know the impact it had on many of our colleagues and their families," Chelsea Woodhead, chief people officer at Arrive Logistics, said in a statement to Business Insider.

Arrive's co-founders, CEO Matt Pyatt and president Eric Dunigan, are deferring 100% of compensation, and other members of Arrive's senior leadership team are deferring compensation.

In February, venture capitalists highlighted Arrive to Business Insider as one of 31 hottest logistics startups whose valuations was set to soar this year.

Coyote Logistics — 27 employees

Coyote Logistics/YouTube

Coyote Logistics shuttered its Chattanooga, Tennessee, office in February. Some employees were retained and moved to Atlanta, but 22 jobs were eliminated.

An additional five employees in Coyote's information-technology department were laid off that month as well.

A Coyote spokesperson told Business Insider that the laid-off employees received severance packages and job-placement services.

The Chattanooga office had been reduced to a small staff by the time it was shut down earlier this year, said FreightWaves, which first reported the layoffs.

Coyote was founded in 2006 in Chicago, and was acquired by UPS in 2015 for $1.8 billion.

A spokesperson for the company noted to Business Insider that Coyote is still growing, despite the layoffs and the current business environment.

"Coyote continues to grow and is currently hiring for 42 open positions as we provide services that help keep critical infrastructure supplies moving," the spokesperson said in an emailed statement. "We regularly adjust our workforce to meet the needs of our customers, which includes moving positions to other Coyote offices to enhance efficiency and customer service."

Coyote is among the nation's largest freight brokers, bringing in some $2.4 billion in revenue in 2017, according to a 2018 UBS report.

Flexport — 50 employees

Courtesy of Flexport

San Francisco-based Flexport laid off 50 employees in February, the company confirmed with Business Insider. This totals 3% of its workforce.

TechCrunch reported the layoffs first, noting that Flexport is yet another company funded by Softbank that's had to cut down on employee growth. Of course, compared to Softbank cohorts like Zume Pizza and WeWork, Flexport's job cuts are relatively minor.

Flexport was founded in 2013, billing itself as the world's first technology-based international freight forwarder and customs broker.

In February, venture capitalists highlighted Flexport to Business Insider as one of 31 hottest logistics startups whose valuations was set to soar this year. Along with Softbank, G Squared, Reddit cofounder Alexis Ohanian, Y Combinator, and 8VC are investors.

See the rest of the story at Business Insider

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