Trimble’s (NASDAQ: TRMB) transportation group has laid off an undisclosed number of employees amid ongoing challenges tied to the coronavirus pandemic, new business strategy and the company’s electronic logging device (ELD) integration.
Responding to a FreightWaves inquiry, Trimble on Thursday released the following statement:
“We recently implemented strategic changes to the organizational structure of our Transportation sector, including a reduction of a limited number of positions.
“While decisions like these are always difficult, we are confident that these adjustments better enable us to not only continue to support our customers and partners today but accelerate our delivery of innovative solutions to the industry in the months and years ahead. We remain dedicated to achieving our mission of facilitating collaboration across the supply chain between the carriers, shippers and intermediaries we serve.”
Executives declined further comment, a Trimble spokesperson told FreightWaves.
It’s been a tough year for Sunnyvale, California-based Trimble, a provider of technology solutions for trucking companies, freight brokerages and third-party logistics providers.
In January, the company’s PeopleNet ELD experienced widespread outages tied to the transition of the calendar year, dragging down its financial performance. Trimble’s transportation segment produced revenue of $170.6 million during the first quarter of 2020, down 10% from the first quarter of 2019.
The company’s second-quarter earnings report, released on Aug. 5, registered a decline in transportation revenue of $150.9 million, down 24% from the second quarter of 2019.
Other factors affecting Trimble’s logistics division included its acquisition of Kuebix, a TMS provider, as well as executing a subscription business model transition in the company’s enterprise business.
“While we remain convinced of both the long term market opportunity of our supply chain strategy, as well as the viability of our strategy, we are currently performing below our potential in the transportation segment,” said Robert Painter, Trimble’s CEO, in a statement accompanying the second-quarter earnings report.
Painter added that an economic recovery “will take longer than anticipated” because the transportation sector has “suppressed demand.”
For that reason Trimble did not provide a financial outlook for the remainder of 2020, the company said.