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ArcBest to close 10 ABF Freight sites, cut 2% of workforce
Company cites optimization effort, expects savings and restructuring charges
ABF currently operates 240 service centers with more than 9,600 dock doors across the United States, Canada and Puerto Rico. (ArcBest)
Key Takeaways:
- ArcBest said July 16 it will close 10 smaller-market ABF Freight service centers and cut head count 2% in an optimization initiative.
- The moves affect about 1% of ABF’s network doors and are expected to deliver about $40 million in annualized savings, the company said.
- ArcBest expects $6 million to $7 million in cash charges and $76.5 million in impairments, with union approval and Q2 earnings due July 29.
ArcBest plans to close 10 service centers operated by its less-than-truckload division ABF Freight, the carrier and logistics group said in a Securities and Exchange Commission filing, representing around 1% of its network doors.
The service centers are in smaller markets, and ArcBest plans to consolidate their operations into other facilities within the affected regions, the firm added.
Fort Smith, Ark.-based ArcBest also plans to reduce its head count by 2% through layoffs and eliminating some open positions as part of an asset optimization and cost-cutting initiative, the company said in an announcement after markets closed July 16.
ArcBest ranks No. 14 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, and ABF ranks No. 7 in the LTL segment of the freight market.
ABF currently operates 240 service centers with more than 9,600 dock doors across the United States, Canada and Puerto Rico, according to the company’s website. ArcBest operates 4,229 tractors and 24,125 trailers, according to data provided to Transport Topics. It has around 14,000 employees.
The company expects to generate about $40 million in annualized cost savings as a result of the initiatives.
The company’s share price rose in morning trading July 17, peaking above $160 per share after closing at $157.61 on July 16. Its 52-week high is $176.69.
ArcBest said in the SEC filing that the changes will result in aggregate cash charges of between $6 million and $7 million, largely in the third quarter of 2026, and aggregate noncash impairments of about $76.5 million, which it expects to recognize in its second-quarter 2026 results. The charges include between $5.5 million and $6 million of one-time termination benefits. ArcBest is scheduled to release its Q2 earnings July 29.
The consolidations constitute a change of operations under the National Master Freight Agreement with the International Brotherhood of Teamsters and are subject to approval by the joint union-management Change of Operations Committee, ArcBest said.
The company said that, as of March, around 81% of its asset-based division’s employees were covered under the 2023 NMFA, which is set to remain in effect through June 30, 2028.
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Sector Rankings
LTL | TL/Dedicated
Intermodal/Drayage
Package/Courier | Air/Expedited
Refrigerated | Flatbed/Heavy
Tank/Bulk | Household/Commercial
ArcBest’s asset-based division — the vast majority comprising ABF — represented about 63% of the company’s total revenue in the first quarter of 2026 before other revenues and intercompany eliminations.
The company said the head count reduction and closure of service centers were part of an optimization of its operating footprint to “better align resources with … long-term strategic priorities.”
Following the planned closures, the company’s total door count is set to be about 8% above 2021 levels.
Scale and density are vital in the LTL space, so an expansive terminal network is crucial.
Rates for less-than-truckload customers of ArcBest and ABF Freight increased 5.9% on average June 22 in the latest illustration of the ongoing freight market rebound.
Meanwhile, effective Aug. 1, the MoLo Solutions, Panther Premium Logistics and ArcBest Technologies units will operate under the ArcBest brand as part of the optimization initiative, the company said.
