Job Losses in Florida Due to Yellow Corp. Bankruptcy
The closure and subsequent bankruptcy of Yellow Corp., a national transportation firm, resulted in the loss of 524 jobs across Florida, contributing to a total of 30,000 jobs eliminated nationwide.
Details of Job Cuts
In a letter published on the Florida Worker Adjustment Retraining and Notification database, the Nashville-based company revealed the specifics of the job reductions. The breakdown included 97 job losses in Tampa and 19 in Fort Myers. Other affected areas were Miami with 191 job cuts, Orlando with 114, Jacksonville with 45, Boynton Beach with 39, and Ocala with 19.
Federal Notification Compliance
Each location was individually informed about the layoffs, with letters sent to comply with federal WARN Notice regulations, though the content of the letters was uniform.
Declaration of Closure
In the correspondence, Yellow Corp. indicated that it and its affiliates made the tough decision to halt regular operations on July 30, 2023, leading to the permanent closure of all locations and layoffs.
Bankruptcy Filing and Financial Struggles
Yellow Corp., which has been in operation for a century, filed for Chapter 11 bankruptcy on August 6. In its filing, the company noted its intention to initiate an orderly wind-down of operations for value maximization despite seeking restructuring.
Legacy and Employment Impact
According to an Associated Press report, Yellow Corp. received $700 million in federal loans during the pandemic, leading to U.S. government ownership of 29.6% of its assets. The company’s failure was attributed to ongoing disputes with the International Brotherhood of Teamsters and years of financial strain due to poor management decisions.
Additional Layoffs in the Area
Although these job cuts occurred three weeks ago, they are part of a worrying trend in the region. On August 14, Paragon Water Systems announced 161 layoffs in the Tampa area, while Centrex Revenue Solutions and LGSTX Services reported job cuts of 71 and 26, respectively. Additionally, on August 17, the moving company WayForth informed the state about 31 local job losses.
