Ryder System Inc. is set to lay off hundreds of employees after losing work at an Applied Materials semiconductor plant in Austin, Texas, according to a recent notice sent to state officials.
The logistics and transportation provider said it will cut 801 jobs by March 31 and expects its operations at the plant will be closed permanently.
The job cuts are “due to a customer’s changing business needs,” Anne M. Hendricks, a spokeswoman for Ryder, told FreightWaves.
“Ryder will no longer operate the [Applied Materials] facilities located in the Austin area,” Hendricks said. “We understand the customer is insourcing a significant portion of the operations and transitioning a portion to two third-party logistics providers. Ryder employees at these facilities are encouraged to consider any open positions at other Ryder facilities in the area or to apply for positions with the customer or the new service providers.”
Miami-based Ryder (NASDAQ: R) did not specify the types of positions being eliminated. The company operates a fleet of more than 5,600 commercial trucks and has 9,000 drivers nationwide, according to the Federal Motor Carrier Safety Administration.
In December, Applied Materials (NASDAQ: AMAT) announced that it was expanding its manufacturing operation in Austin. The Santa Clara, California-based company provides manufacturing equipment, services and software to the semiconductor and related industries.
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