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Layoffs, bankruptcies batter U.S. logistics and manufacturing at start of 2026

Layoffs, bankruptcies batter U.S. logistics and manufacturing at start of 2026

101 finance101 finance2026/01/08 15:42
By:101 finance

U.S. logistics, manufacturing and supply-chain firms have started 2026 with a surge of layoffs, facility closures and bankruptcy filings, affecting more than 2,200 workers nationwide.

State notices and court records show job cuts spanning rail support services, parcel networks, food manufacturing, packaging, last-mile delivery and e-commerce, as companies grapple with lost contracts, high costs, excess capacity and tighter credit conditions.

RailCrew Xpress to lay off more than 400 workers after losing CSX contract

RailCrew Xpress, a Kansas City–based transportation company that shuttles railroad crews between job sites, is laying off more than 400 employees across multiple states after losing a major contract with CSX, according to company disclosures and state WARN filings.

The layoffs affect workers in Virginia, Georgia and Florida, with additional office closures planned in North Carolina, where at least eight locations are slated to shut down. Employees in Kansas and Missouri are not currently included in the cuts.

Founded in 2005, RailCrew Xpress operates in roughly 25 states. Prior to the layoffs, the company employed about 2,000 workers.

AVI Food Systems to lay off 297 workers in Philadelphia

AVI Food Systems plans to lay off 297 employees in Philadelphia as part of a facility closure, according to state WARN filings.

The layoffs are scheduled to take effect Feb. 1 and impact workers at locations listed as 2400 Spruce St. and 1 Convention Ave., suggesting the job losses are tied to large institutional foodservice operations.

The company has not publicly disclosed the reason for the closure. AVI Food Systems operates on-site dining and foodservice programs at hospitals, universities, convention centers and other high-traffic facilities.

Packaging Corporation of America to lay off 200 workers at Washington mill

Packaging Corporation of America plans to lay off about 200 employees at its containerboard mill in Wallula, Washington, after deciding to permanently shut down a paper machine and kraft pulping operations at the site, according to state filings.

The layoffs are expected to take effect in February. Other parts of the mill — including a recycled pulping operation and a separate paper machine — will remain in operation.

PCA said the move is part of a restructuring aimed at improving the mill’s long-term viability amid high wood fiber and energy costs that have made the facility less competitive.

Kroehler Furniture closes North Carolina manufacturing plant

Kroehler Furniture Co. permanently closed its Conover, North Carolina, manufacturing facility on Dec. 31. The closure will result in the layoff of more than 275 employees, according to a state WARN notice.

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