Less-than-truckload carrier Saia is laying off its customer service teams, opting to have local terminals handle the service function moving forward, a source close to the matter told FreightWaves.
The source said the layoffs will impact an undetermined number of customer service representative teams in Atlanta and Boise, Idaho, among other locations. Employees were given 60 days’ notice with the opportunity to earn a bonus if they remain on board throughout that period, the source said.
A representative from Johns Creek, Georgia-based Saia (NASDAQ: SAIA) confirmed to FreightWaves that “Saia recently restructured its Customer Service Department to better align with the evolving needs of the business and customer expectations.”
The changes were said to be part of a plan to improve response times to customers as well as efficiency across its network of terminals.
“We have invested in bringing customer service closer to the client by leveraging technology and allowing customers to call their local terminal directly for faster response times that will deliver an improved customer experience,” a statement read.
The company didn’t say how many employees will be affected by the changes.
“We remain focused on delivering reliable, responsive service to our customers and will continue to assess opportunities to improve,” said Fritz Holzgrefe, Saia’s president and CEO, in the statement.
Last month, Saia reported a 12.2% year-over-year tonnage increase in February, the combination of a 4.2% increase in shipments and a 7.6% increase in weight per shipment. The February result followed a 13.8% tonnage increase in January.
On a two-year-stacked comparison, tonnage was 23.2% higher in February, Saia’s largest gain since Yellow’s exit. Saia acquired 28 terminals from bankrupt Yellow Corp. (OTC: YELLQ). The carrier has opened 69 and relocated 28 terminals in recent years.
The company’s first-quarter guidance calls for 30 to 50 basis points of sequential margin deterioration, implying an 87.5% operating ratio (inverse of operating margin) approximately 300 bps worse y/y.
Full-year 2025 guidance calls for 80 to 100 bps of margin improvement, implying an 84% OR.
More FreightWaves articles by Todd Maiden:
- Lineage finalizes acquisition of Bellingham Cold Storage
- March supply chain data craters following inventory pull-forward
- Yellow’s new bankruptcy plan revealed, next steps still uncertain
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