C.H. Robinson shares increased by 0.38% to $101.47 this month, shortly after the company confirmed plans to lay off an additional 300 employees during its second round of layoffs in seven months, according to Transport Topics.
“C.H. Robinson Worldwide, Inc., closed $19.76 short of its 52-week high ($121.23), which the company reached on August 25,” a recent MarketWatch report said. Deemed an “all-around grim trading session for the stock market,” the current figure was recorded during the second consecutive day of the stock’s gains.
The company’s recent shares have outperformed its peers’, such as Old Dominion Freight Line, Inc., whose shares fell 0.28% to $301.30, Expeditors International of Washington, Inc., whose shares rose to 0.10% to $114.55, and J.B. Hunt Transport Services, Inc., which rose by 1.59% to $171.54.
According to Burns, the laid-off employees, most specializing in the economy and decreasing freight demand, total to less than 2% of the global workforce.
“This impacted colleagues (are) across the company, but primarily in shared services and non-engineering technology roles,” Duncan Burns, C.H. Robinson’s chief communications officer, said via email.
The layoffs are confirmed, as the company experienced a consistent decrease in revenue and earnings during the last three quarters.
“These decisions are never easy to make,” Burns said in a statement regarding the latest layoffs. “However, they are necessary for the company’s long-term success.”
News of the additional layoffs also comes a few months after C.H. Robinson’s former CEO, Bob Biesterfeld, departed from the company. Interim CEO Scott Anderson expects the company to appoint a new chief executive by June 30.
C.H. Robinson’s share has dropped by more than 9% since the start of the year.
Despite the declines, the Eden Prairie, Minnesota-based global logistics company continues maintaining the No. 1 ranking on the Transport Topics Top 100 list of the largest logistics companies in North America.
“The company had been lapping very strong quarters in the year-ago periods, but results were below analysts’ consensus expectations,” Transport Topics said.