Technology Stocks

XPO Logistics Inc. (NYSE:XPO) To Close The Memphis Verizon Communications Inc. (NYSE:VZ) Contracted Facility

XPO Logistics Inc. (NYSE:XPO) has been on a downward trajectory in the last few months, and its stock lost 3.50% in that last trading session to close the day at $52.17. This follows the announcement that the company was planning to close Verizon contracted distribution center in Memphis. Verizon Communications Inc. (NYSE:VZ) on the other hand gained 1.37% in the last trading session after hours of trading to close the day at $56.92.

Verizon orders closure of the facility

XPO is closing the center following investigations by the New York Times that alleged pregnancy discrimination against female employees. In a statement, XPO indicated that their customer had decided to wind up operations in the facility and as a result, the facility has been scheduled to close in June. They have however unveiled plans of opening another facility in Memphis before the year ends. However, the company could not mention the customer that has been identified by media reports, customers and workers as Verizon.

Speaking on the closing of the facility Teamster General President Jim Hoffia indicated that they have always advocated for a better working condition for workers in the XPO-Verizon facility and they were disappointed that the two companies chose to close the facility.

Over 400 workers to lose jobs

Although Verizon and XPO may not be faulted closing the warehouse, they nonetheless could be partly blamed for making workers lose jobs after bringing the situation at the facility unto the spotlight. It is disgraceful for the companies to continue with their businesses while the women they discriminated against continue to suffer.

In a statement, Congressman Steve Cohen stated that it was disappointing for XPO to lay off over 400 workers. He indicated that he has already met with company management and employees concerning labor issues and they have a scheduled meeting over the coming days as they try to address the issues conclusively. Mr. Cohen added that the layoff was disheartening and the company should look for new jobs for the employees.

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