When trucking company Con-way Freight Inc. started 24 years ago, it set up three independent arms to handle administrative decisions regionally, including one in Buena Park in 1994.
But now parent Con-way Inc. of San Mateo wants to control those arms with one brain by consolidating them at a national headquarters in Ann Arbor, Mich.
As a result, Con-way is closing its Buena Park regional headquarters, eliminating about 100 jobs. Some workers are set to shift to Con-way Freight facilities in Orange and Los Angeles County.
Con-way plans to keep and expand its freight center in Orange, according to company officials. It employs about 100 people.
“We have not reduced or consolidated any of Con-way’s freight operations, services or staff at our Orange County service center,” spokesman Gary Frantz said. “In fact, we continue to hire drivers.”
Orange County is a key market for Con-way, which has nearly a dozen service centers in Southern California, according to Frantz. None of those locations are affected by the restructuring.
Con-way Freight specializes in small freight hauls, or “less-than-truckload” shipments. It collects goods from various companies and delivers them to hubs where they are sorted for delivery.
Last quarter, the company brought in almost $750 million in revenue for Con-way Inc., which was down from a year ago.
The drop in part knocked down the parent company’s revenue in the second quarter, which fell by nearly 3% to $1 billion.
Many freight-hauling companies have been challenged in the past year from lower prices, competition and higher costs, according to analysts.
The reorganization, which will cost Con-way $12 million to $16 million, is expected to streamline the business and lower operating costs.
“This transformation will improve Con-way Freight’s performance by enabling us to anticipate and respond to customer needs more quickly and intelligently,” said John G. Labrie, who was appointed last month as president of Con-way Freight.
Part of reducing the costs involves laying off most of Buena Park’s 95 workers by the end of the year, according to Frantz. The jobs lost are mostly salaried positions in management, administrative, sales and operations support, with some hourly clerical positions.
For those who aren’t transferred to other facilities, Con-way will divvy out severance packages and help workers look for new jobs, according to Frantz.
Previously Con-way Freight operated with three divisions: Con-way Freight-Central in Ann Arbor, Con-way Freight-Southern in Fort Worth, Texas, and Con-way Freight-Western in Buena Park.
The company recently completed its $750 million acquisition for Contract Freighters Inc. of Joplin, Miss. Con-way Inc. also owns Menlo Worldwide, which manages warehouses and shipping for other companies.
In all, Con-way employs 22,000 people and operates primarily in the U.S., Canada, Puerto Rico and Mexico.
