Nashville-based Yellow Corp., a freight and logistics company, will close its Milwaukee facility at 6161 S. 6th St. and consolidate operations into its Oak Creek location at 6880 S. Howell Ave.
Yellow Corp. has been running its Milwaukee facility through two of its subsidiaries: Holland and YRC Enterprise Services, Inc. The company has two additional subsidiaries called New Penn Motor Express LLC and USF Reddaway Inc. The Oak Creek location is operating under the YRC Enterprise Services brand.
The company’s Milwaukee facility, called Milwaukee Terminal 386, will close on May 28, according to a WARN notice filed with the state. There are 189 employees working for Yellow Corp. in Milwaukee and the company is planning to “transfer substantially” all affected workers.
“In parts of the U.S., Yellow operates multiple facilities within the same city. Some of these properties are smaller end-of-line terminals, which are being combined with larger and more modern regional terminals and distribution centers,” said Yellow in a statement Friday. “Through our long-planned change of operations as part of our nationwide One Yellow enterprise transformation, we anticipate that our two Milwaukee facilities will be consolidated into one. These facilities are approximately a mile apart from one another. In 2022, we communicated this change to our local employees.”
Yellow said it sent of the WARN notice out of an "abundance of caution."
“All facility employees will be impacted on the date of closure, but, as noted above, the company hopes to continue employing substantially all of the affected employees at other company facilities,” states the WARN notice.
Darren Hawkins,chief executive officer of Yellow Corp., explained in the company’s latest 8K filing the firm is undergoing an “optimization” process to enhance network efficiencies and save money. The company plans to sell approximately 17 locations that have overlapping service territories.
“We do not plan to sacrifice geographical service coverage or expect this to unfavorably impact customer service,” said Hawkins.