“It is a pretty rough time to be without a job,” said one salesperson who found out just hours before talking to Freight Broker Live that his employer decided to cut his employment rather than keep him working remote. As city and state governments continue to tighten “social distancing” regulations, several companies are having to make the tough decisions.
According to internal sources within mega-brokerage Total Quality Logistics, the company today notified a large number of employees that their time with the company has ended. The employees, many who were already working remotely were notified via phone-calls with management that due to various reasons, the company has decided to let a portion of its staff go.
While actual numbers are not known, sources tell Freight Broker Live that the total number affected was “less than 100 company wide.” Sources tell us that they were told that they would be able to file for unemployment benefits and that the company “would not contest” the claims. We have heard of cuts in Ohio, Kentucky and Arizona so far. According to one former employee, there was no offer of severance or separation pay.
According to Journal of Commerce freight rate software provider Freightos announced Tuesday, March 17th, it will lay off just under 50 employees citing the growing impact of the coronavirus.
These layoffs are happening at what could possibly be the worst possible time. Employers nationwide are moving to a remote workforce system to follow state and federal social distancing guidelines to prevent the spread of COVID-19. The outbreak has claimed the lives of at least 98 people in the United States, and 7,869 world wide, as of this article. “I am not sure I will even be able to find a new job,” said one recently terminated employee. “Everything is closed. Who is going to be hiring?”
According to a survey by the NPR 18% of adults reported that they have been laid off or their work hours have been cut. The proportion affected grew for lower-income households, with 25% of those making less than $50,000 a year reporting that they had been let go or had their hours reduced.
According to a survey of business owners conducted March 7-13 by investment bank UBS, some 24% of employers planned to downsize if the outbreak worsens.