C.H. Robinson's Productivity Rise Amid Headcount Drop

C.H. Robinson, a leading logistics company, has been undergoing significant changes in its workforce and operational strategies. Despite a notable reduction in headcount, the company has managed to achieve productivity gains.

Key Data Points:

• Personnel expenses dropped by 21.5% year-over-year to $343.5 million in Q3.
• Q3 headcount decreased by 14.2% YoY.

This has been largely attributed to their strategic focus on technology, particularly in automating internal processes. The reduction in staff has led to a significant decrease in personnel expenses, contributing to more streamlined operations.

The company has had two rounds of layoffs recently. The first round was in November 2022, affecting approximately 650 jobs. The second round took place in May 2023, resulting in around 300 layoffs. Other reductions occurred through attrition, retirements, and elimination of roles.

The changes at C.H. Robinson reflect a broader trend in the logistics and trucking industry, where companies are increasingly turning to technology to enhance efficiency and reduce costs.

Generative AI Usage at C.H.:

• Used in the final week of Q3.
• Generated over 10,000 transactional quotes.
• Demonstrated potential for scalability and growth.
• May contribute to further productivity improvements.

Source: Trucking Dive