(Corrects to add "up to" in first paragraph, corrects names of
two units in second paragraph)
CHICAGO Oct 29 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
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.