ArcBest announces organizational changes, 2% workforce reduction

Fort Smith-based ArcBest on Thursday (July 16) announced organizational changes and a new brand structure, with an estimated 280 job cuts resulting from the changes. The company said around 60 of the job cuts will be in the Fort Smith metro.

The company said it is “streamlining its organizational structure and optimizing its operating footprint to better align resources with its long-term strategic priorities.” The streamlining will cut 2% of “total positions” through “workforce reductions and the elimination of certain open positions.” With the company recently reporting around 14,000 employees, a 2% reduction is 280 jobs. In a filing with the U.S. Securities and Exchange Commission (SEC), the company said the cuts would come primarily from “employee separations, the elimination of certain open positions, and the non-replacement of certain positions vacated through retirements and other attrition.”

“It’s a small percentage in a company our size, and we’re committed to supporting the people affected through this transition,” Autumnn Mahar, ArcBest director of external communications and public relations, said in response to a question from Talk Business & Politics.

ArcBest also said it will consolidate its companywide service centers, resulting a 1% reduction “of the company’s network doors.” In the SEC filing, the company said it plans to close 10 ABF service centers “in smaller markets.”

The SEC filing also provided detail on the costs to implement the actions announced Thursday. Cash charges are expected to range between $6 million and $7 million, to be recorded primarily in the third quarter of 2026. The company anticipates between $5.5 million to $6 million of costs related primarily to “one-time termination benefits, including severance and other customary employee benefit payments associated with the workforce reduction.”

ArcBest also plans to end its once-touted Vaux Freight Movement System and focus instead on its Vaux Smart Autonomy system. That is expected to result in a non-cash, after-tax charge of around $38.2 million. The charge is essentially a write-down of investments related to the system.

“The company expects these measures to improve operating efficiency and generate approximately $40 million in annualized cost savings while maintaining ArcBest’s commitment to premium service,” noted Thursday’s news release.

The shipping and logistics company also plans beginning Aug. 1 to bring its MoLo Solutions, Panther Premium Logistics, and ArcBest Technologies operations under the ArcBest brand. No changes are planned for the ABF Freight brand. ABF Freight is the company’s less-than-truckload division and is the largest ArcBest subsidiary.

“The simplified brand structure advances ArcBest’s vision to be the leading logistics provider and innovator, working with shippers to build better, more resilient supply chains,” the news release noted. “It also reflects ArcBest’s continued focus on simplifying how customers access its transportation and logistics solutions.”

Seth Runser, ArcBest president and CEO, said the changes are necessary to best position the company going forward.

“ArcBest has been a trusted logistics provider for over 100 years,” Runser said in a statement. “These actions strengthen the foundation we’ve built and prepare us to deliver for our customers over the next hundred.”

ArcBest is set to report second quarter numbers before the market opens on July 29. The company on June 4 raised its second-quarter outlook, saying it expects a better operating margin.

ArcBest posted a first-quarter 2026 net income loss of $1.037 million, off the $3.131 million gain in the same quarter of 2025. Excluding one-time charges, net income in the quarter totaled $7.151 million, down 40% from the comparable adjusted net income of $11.937 million in the same quarter of 2025. Revenue in the quarter totaled $998.786 million, up 3.3% compared with $967.077 million in the same quarter of 2025, and better than the consensus estimate of $998.38 million.

ArcBest shares (NASDAQ: ARCB) closed Thursday at $157.61, up $10.14. The share price in the past 52 weeks has ranged between $59.43 and $176.69.