News / LSP staff feeling the sharp edge of the axe, while BCOs eye new talent

Logistics continues to offer promising employment prospects – primarily on the BCO side, while elsewhere jobs are disappearing at a faster clip.

This is led by employment in the e-commerce sector: in its latest move on this front, Amazon plans to cut 14,000 jobs as part of a restructure that aims to eliminate some 1,800 corporate roles.

At UPS, about 32,000 warehouse jobs have been lost in network consolidation, about 14,000 management positions have been axed over the past 18 months, and some 2,000 drivers have taken management’s buy-out offer.

The bleeding is less pronounced in other logistics sectors: Nestlé aims to cut 4,000 jobs in its manufacturing and supply chain operations, while Target is looking to eliminate 1,800 positions.

Restructuring and plant closures will mean more than 920 supply chain-related jobs are under the axe in Texas alone, while culls have also been reported from California, Florida, Georgia and Wisconsin, including at Averitt Express, Allen Distribution and 360x Logistics.

Much of the cull – especially in the parcel segment – is the result of ‘rightsizing’ to correct rapid expansion in response to the demand spike in 2021/22 – now, that demand is slowing.

Helmut Berchtold, head of the US arm of logistics recruitment specialist adi Consult, noted that consumer sentiment had “darkened”, owing to furloughs and layoffs in government, the prospect of healthcare credits expiring at the end of the year and worries about the impact of inflation caused by tariffs.

“People are uncertain about the future, so they are not going to buy,” he said, adding that rising defaults in car loans and housing also indicated increasing headwinds.

Forecasts suggest the volumes won’t be there to sustain the full workforce, he said.

“If the prognosis on the market holds true, the logistics market for employees is going to get tighter. Industries will only be hiring if they have to,” he warned.

Consolidation in logistics is adding to the loss of jobs. One prominent example is the takeover of DB Schenker by DSV, which is bound to result in sizeable layoffs.

“Whenever two large companies come together, you always have layoffs. It’s the nature of the beast,” commented Mr Berchtold.

Washington’s erratic course of its trade and tariff policy is compounding the situation, as the uncertainty prevents companies from making strategic moves and placing investments.

Abe Eshkenazi, CEO of the Association for Supply Chain Management (ASCM), pointed to the debate on near-shoring, which has yielded relatively few results so far.

“The rhetoric is there, but I don’t see the infrastructure, the investment in this,” he said, adding that he expects companies to continue to focus on resilience rather than agility in the coming year, as they remain hamstrung by uncertainty and short planning horizons.

Cost containment has become a stronger focus for firms, with predictable repercussions on salaries. Wage rises in the handling sector slowed, according to a recent survey.

The picture is brighter on the supply chain management side. ASCM’s 2025 Salary & Career Report shows median remuneration in the sector is $103,000, 54% above the general average, and that wages have grown steadily between 3% and 5% in recent years. Of the report’s respondents, 78% reported salary increases for this year. Base salaries ranged from $60,000 a year to $158,000, with bonuses raising the total to $62,000-$188,000.

Massive restructuring and job cuts are confined to functions like warehouse activities, said Mr Eshkenazi. “I think while we’re seeing a streamlining and reduction of the lower margin, […] I don’t think we’ll see this cascade into other functions of supply chain.”

This is reflected by a high degree of optimism among supply chain professionals about their career prospects, he noted. More than 80% rated their job satisfaction at 7 out of 10, or higher, and 83% would recommend a career in supply chain.

Automation and AI will take a toll on some functions, but this will not replace supply chain professionals, Mr Eshkenazi said.

“These individuals are needed. There is still a shortage across the globe,” he explained, and sees a need for industry to step up talent cultivation.

“Investment in technology has been exponential. My concern is that investment in talent is not commensurate with this. We’re overweighted in technology and analytics, but underweighted in critical thinking and problem solving. We need to mesh these,” he said.

Investment in talent is a long-term game, he noted, which is in contrast with the shortened planning horizons prevalent under the present circumstances. In conjunction with cost pressures from tariffs, these shorter windows might also have a bearing on tenure for new recruits.

Mr Berchtold noted that, historically, management had not expected newly hired salespeople to bring in new business in their first six months, as they need time to develop relationships with clients.

“It remains to be seen how long companies will keep people and let them grow,” he said. “If the market is tight, they’ll have a hard time finding new business, so they will have to take it from others.”