Yellow Company, which has been in existence for almost 100 years has announced that it was laying off 8,000 of its employees.
Company announces job losses and bankruptcy because of debts. (Photo: Transport Topics)
Yellow Company Facing Immense Debt
The Yellow Corporation has released a memo about the situation to its former employees that the company is shutting down and laying off employees.
John Murphy, the Teamsters National Freight director, has advised union workers to gather their belongings from the offices as there is a concern that the current facilities may not be available to them in the future.
The warning comes as the company has accumulated $1.5 billion in debts, with $729.2 million owed to the federal government due to a loan facilitated by the CARES Act.
John Murphy has expressed his concerns regarding the future of Yellow. He has warned the approximately 20,000 workers associated with the company that the likelihood of its continued existence is becoming progressively less certain.
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Company Threatens to Declare Bankruptcy
According to The Wall Street Journal that the trucking company is currently preparing to file for bankruptcy.
In the statement of Satish Jindel, the president of SJ Consulting, a transportation and logistics firm, bankruptcy could spell the end for Yellow due to the possibility of liquidation.
Yellow has experienced a significant drop in shipments over the past year. While they were previously sending 49,000 shipments per day in 2022, they now average no more than 15,000 daily shipments.
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