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December 19, 2008 9:10 AM, EST

Ryder to Cut 700 U.S. Jobs; Scale Back International Business

Ryder System will scale back its international business and cut 700 U.S. jobs while temporarily laying off 1,425 workers and focusing its operations on the United States, Canada, Mexico and the United Kingdom.

The temporary layoffs are related to auto sector weakness and the U.S. cuts will save $35 million next year, the company said Thursday.

Ryder is moving to end European supply chain contracts and shut down operations in Argentina, Chile and Brazil that represent 3% of total revenue.

The moves will lead to fourth-quarter charges of $53 million to $60 million after taxes, the company said.

Ryder also said earnings would be “at the low end” of an earlier guidance that ranged between $1.03 a share and $1.13 a share.

Ryder is ranked No. 5 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.