This week, one of the largest suppliers of trucking and logistics services in Canada announced a major layoff as the COVID-19 crisis stifles the economy.
On Wednesday, Calgary-based trucking firm Mullen Group Ltd. announced the layoff of approximately 1000 workers. The layoffs are described as temporary, but it isn’t clear when the workers will return to work.
Mullen Group says that they will provide $5 million towards an assistance fund for staff members.
Mullen Group says that they were “basically on target to meet our expectations” in terms of financial performance until mid-March, but that “once the full extent of the virus started to become evident, demand deteriorated in many sectors of the economy directly impacting several of our Business Units.”
Mullen Group says that they are optimistic about their ability to bounce back after the pandemic subsides. “Once the economy starts to recover we will be well positioned to take advantage of the inevitable opportunities that arise during challenging times,” the company said.
“…as the CEO of a large employer in Canada, it is important to also talk about another consequence of this crisis and that is the devastating impact the government mandated closures are having on so many industries, businesses and the economy. And I am not exaggerating by stating that the job losses in the private sector are staggering. The bottom line is that this health crisis is hurting a lot of people. Obviously all of us hope that the steps taken by the governments will be successful but realistically I doubt if we will know for quite some time,” said company Chairman and CEO Murray Mullen.
Mullen Group is a network of independently operated businesses and provides both oilfield services and trucking/logistics services.
Earlier this week, Saskatchewan oil service trucking company Fast Trucking Service laid off 250 of their 350 employees amid economic slowdown triggered by the COVID-19 pandemic and an oil price war taking place between Saudi Arabia and Russia.