With LTL tonnage down more than 7% in the first quarter of 2009, Saia Inc. announced new cost-cutting measures that include decreasing its executives’ pay by 10% and its hourly, linehaul and salaried employees’ pay by 5%. The company also suspended its 401(k) matching program for employees. These measures are estimated to save Saia about $18 million annually.
Helped in part by cost reductions, Saia posted a Q4 profit that beat many analyst expectations. The company has cut about 7% of its field and corporate workforce since October 2008. It plans to enact more cost reductions in the coming year, amounting to savings of about $8 to $10 million in 2009.
Saia announced that it would cut its workforce by 5% across field operations and its corporate office. The reduction is meant to bring the company's workforce in line with the lower than normal seasonal volumes and weaker trucking environment.
