Truckmakers slash jobs as orders for semis dry up

North America’s biggest truckmakers and their suppliers are firing thousands of workers as orders dry up amid a glut of big rigs.

Navistar International will reduce global employment by more than 10 percent, the maker of International brand trucks said Tuesday.

The Lisle, Ill.-based manufacturer, which has more than 13,300 workers worldwide, slashed its forecast for 2020 revenue to below the lowest estimate among analysts surveyed by Bloomberg.

Navistar follows truck-engine maker Cummins, which announced plans in November to dismiss 2,000 salaried employees as part of a $300 million cost-cutting effort next year, and Meritor, which in September flagged $20 million in severance costs linked to a restructuring the components supplier expects to complete by the end of the year.

Trucking companies ordered too many vehicles last year when freight volumes were growing. That overhang is causing freight prices to drop and orders to plunge. Convoy, a startup that connects shippers with truck drivers, believes the freight industry has been in recession since fall 2018, its economist said in an August blog post.