OFFICIAL-CORRECTED-YRC to cut up to 3,750 jobs at units
(Corrects to add "up to" in first paragraph, corrects names of two units in second paragraph)
CHICAGO Oct 29 (Reuters) - No. 1 U.S. trucking company YRC Worldwide Inc (YRCW.O) is to cut up to 3,750 hourly jobs as part of ongoing efforts to revamp operations at two units, a spokeswoman said on Wednesday.
The job cuts will consist of dock workers and truck drivers at its Roadway and Yellow Transportation units, representing roughly 6 percent of YRC's total work force of 58,000.
The timing for the layoffs has yet to be determined, the spokeswoman said.
Earlier this year YRC took a $782 million goodwill charge to reflect the lower fair value of regional unit USF Corp, which YRC bought in 2005, and Roadway, which the largest U.S. truck maker bought in 2003.
YRC is a less-than-truckload operator, meaning these type of companies consolidate smaller loads into a single truck using large warehouse facilities where loads are exchanged.
In February, YRC said it would close 27 such facilities at USF, with the loss of 1,100 jobs.
Like the rest of the U.S. trucking sector, YRC's business has been hit by a combination of weak retail and auto sales, and an overall crumbling housing sector.
Analysts have questioned whether in a prolonged downturn YRC will be able to pay down its debt and maintain cash flow. The trucking company says that it will be able to do both.
"I think what's happened is that people are trying to create a story where there is no story," YRC Chief Executive Bill Zollars said earlier this month. "In normal times people wouldn't pay attention."
The company's stock has fallen more than 50 percent since Oct 3 and around 90 percent since February 2007 when it was trading at close to $50.
YRC shares closed up 40 cents or more than 10 percent on Nasdaq on Wednesday at $4.20.