The freight industry just took another hit, and this time it’s no minor shakeup. We’re looking at almost 9,000 layoffs stretching across the U.S. and Mexico. That includes people working in trucking, logistics, food distribution, manufacturing, and warehousing.

If you’re a carrier, a dispatcher, a broker, or anyone else tied into this ecosystem, this affects you whether you realize it or not. This isn’t just a headline, this is a trend that’s gaining steam, and it deserves a closer look.

A Tidal Wave of Layoffs in the Supply Chain

According to FreightWavesNearly 10,000 jobs cut in freight sector, nearly 8,794 jobs have been cut in just the past few weeks. These aren’t just local or regional changes either. This wave touches nearly every corner of the freight and logistics world.

From the closure of Lacroix Electronics’ plants in Grand Rapids and El Paso, to FedEx and Frito-Lay shutting down facilities, the reasons are varied but the result is the same — thousands of jobs wiped out.

Some of the most impacted companies and locations include:

And that’s not even the full list. The layoffs stretch across at least 20 states including Arizona, Alabama, Georgia, Florida, Illinois, and Texas.

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Why Is This Happening?

The many reasons for job cuts in the freight sectorThe root causes are complex, but here are some of the top factors fueling this freight industry contraction:

1. Economic Softness & Reduced Demand

We’re still seeing the effects of post-pandemic overcapacity. Retail inventories ballooned in 2023, consumer demand softened, and now the consequences are catching up with companies. Lower demand means fewer shipments, which means less need for labor.

2. Tariffs & Global Uncertainty

Lacroix Electronics and several Mexico-based manufacturers blamed tariffs for part of the decision. When global trade policies become uncertain or unstable, companies respond by pulling back.

According to Mexico’s Confederation of Workers (CTM), tariffs and declining U.S. consumer demand for automotive and electronics are a big reason for job losses in Mexican plants tied to U.S. supply chains.

3. Retail & Manufacturing Restructuring

Big box retailers are tightening up. Kohl’s, Target, and JCPenney are all either closing or trimming their distribution centers. Frito-Lay, Blue Diamond Growers, and even Panera have shut down major facilities.

This isn’t just cost-cutting. It’s a sign that the current logistics model is under pressure and being redesigned.

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Why This Should Matter to Everyone in Freight

When distribution centers shut down and truckloads dry up, it doesn’t just affect the people who are laid off. It trickles across the entire network.

  • Fewer loads mean tighter competition among carriers.

  • Brokers face thinner margins.

  • Owner-operators may struggle to stay afloat as freight volume dips.

  • Warehouse space opens up, driving down prices and pushing out smaller players.

If you’re in trucking or logistics, now is the time to double down on smart dispatching, efficient operations, and diversified freight lanes.

The Bigger Picture: What’s Next?

What's next for the freight industry?There’s no easy answer. Economic cycles are natural, and the freight sector is no stranger to volatility. But the size and speed of this current wave should be a wake-up call.

The reality is that freight is a mirror of the economy. When businesses stop building, growing, or shipping, the trucks stop rolling. The warehouses go quiet. The jobs disappear.

As we move into the second half of 2025, the industry is going to need to rethink how it adapts to these challenges. That might mean:

  • More automation and fewer human jobs.

  • Shifting more freight to intermodal or consolidated shipping.

  • Strategic downsizing in response to global economic shifts.

Final Thoughts from AFT Dispatch

At AFT Dispatch, we keep a close eye on these trends because they impact the people we serve. We work with carriers and owner-operators who rely on a steady flow of work to support their families and businesses.

This layoff wave isn’t just a blip. It’s a signal. A chance to recalibrate, prepare, and find ways to stay resilient in the face of change.

If you’re a carrier looking for reliable dispatch support, now’s the time to insulate your business with the right partners. The freight market may be uncertain, but your plan doesn’t have to be.

Stay safe out there, and keep those wheels turning. If you’re looking to stay on the very top of the trucking industry, subscribe to our YouTube Channel and watch our free weekly trucking videos where we discuss topics pertaining to carriers operating under their own MC authorities and leased on owner operators across America. If you’re a company driver or someone looking to enter the trucking industry, you’re also welcome to join and check out our extensive library of free trucking videos we’ve put together for you over more than a decade in business.

Feel free to give us a call or text us if you have any questions about any of the services we offer. Remember we work with carriers operating under their own MC Authority whether you have one truck and trailer and you’re your own driver or if you have a fleet of trucks with many company drivers. We also work with truck drivers who operate as leased on owner operators, drivers who own their own equipment but prefer to run under another company’s MC Authority and not have to deal with everything that goes into running a trucking company.

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