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September 23, 2016 8:55 AM, EDT

UTi Worldwide to Cut 200 Jobs; XPO May Hire Them

UTi Worldwide Inc.

UTi Worldwide will be laying off 200 employees when its contract with Sealed Air ends on Jan. 15, 2017, according to a letter sent to Wisconsin Department of Workforce Development.

Out of the layoffs, 128 are forklift drivers and 55 others are general warehouse or clerical workers.

Sealed Air ended the contract with UTi Integrated Logistics and signed a deal to work with XPO Logistics starting next year. Sealed Air specializes in packaging to protect food, packages and even hospital works from bacteria and other microbes.

However, the logistics provider wrote that it believes that XPO Logistics likely will hire many of those employees to continue at Sealed Air.

In August, DHL Supply Chain announced it would lay off 122 workers in La Vergne, Tennessee, on Nov. 16 when Nissan switches to XPO Logistics.

Representatives for UTi and Sealed Air did not respond to calls for comment.

XPO Logistics ranks No. 2 on the Transport Topics Top 50 list of the largest logistics companies in North America. UTi Worldwide ranks No. 11.