National trucking company Yellow Corp. has informed the state Commerce Department that it is letting go of at least 1,000 employees in North Carolina.
The company, based in Nashville, is closing all operations amid media reports of an impending federal bankruptcy filing.
According to state officials, Yellow’s shutdown would affect 200 employees each at its Charlotte and Morrisville facilities, and 150 each in Fayetteville, Jacksonville, Rocky Mount and Wilmington.
“The list and locations are based on research efforts by our workforce staff at this point and not coming from the company,” Commerce spokesman David Rhoades said.
Some media reports have said there could be as many as 30,000 affected Yellow employees overall.
Yellow has been a low-cost competitor of Old Dominion Freight Line of Thomasville. A core element of Old Dominion’s growth spurt the past 10 years has been gaining market share and employees from struggling or out-of-business competitors.
People are also reading…
Yellow has not made a public statement addressing the media reports.
However, Yellow said in a notice to the state that it shut down “regular operations” on Monday and that it “expects all layoffs and location closures related to the shutdown to be permanent.”
The Associated Press reported Yellow gained a $700 million pandemic-era loan from the federal government on national security grounds.
The Teamsters supported the $700 million loan when it was first announced. As of June 30, Yellow had paid $67 million in cash interest on the loan, which is due in 2024, the company said.
Media reports had Yellow laying off hundreds of nonunion employees on Friday.
“Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government,” Teamsters general president Sean O’Brien said in a statement. “This is a sad day for workers and the American freight industry.”