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updated: 10/1/2019 11:16 AM

Roadrunner to cut 450 jobs in downsizing

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DOWNERS GROVE -- Shipping and logistics company Roadrunner Transportation Systems announced Tuesday it will downsize its unprofitable dry van business, eliminating about 450 jobs nationwide.

In addition to the job cuts, which the company said will occur in the next 60 to 90 days, the downsizing includes reducing its dry van tractor and trailer fleets by more than 50% and closing five terminal locations. Affected employees will receive either severance or a 60-day notice, the company said in a statement.

The reduction represents approximately 10% of the company's total workforce.

Dry vans are containers that are fully enclosed but not climate-controlled, and are mainly used to transport goods that need to be shielded from the weather but not refrigerated or heated.

"We believe downsizing the dry van business will improve operating margins and cash flow, reduce lease obligations and debt, improve internal controls and allow greater focus on the significant value-creation opportunities within our other businesses," said Roadrunner CEO Curt Stoelting.