Calgary trucking firm Mullen Group reports 1,000 layoffs as pandemic slows economy
Company has started a $5-million family assistance fund to help staff
Trucking, logistics and oilfield services firm Mullen Group Ltd. says it has temporarily laid off about 1,000 people because of the impact of measures to control the COVID-19 pandemic.
Chairman and CEO Murray Mullen says the Calgary-based company was outperforming its year-earlier performance until mid-March, when demand for its services turned lower.
He says there's been a sharp decline in the demand for discretionary consumer goods as well as in commodity-based industries but its less-than-truckload and large diameter pipe transport businesses are doing well.
Mullen says the company has established a $5-million family assistance fund to help staff affected by the downturn.
The company reported net income of $4.7 million or four cents per share on revenue of $318 million in the three months ended March 31.
That's down from net income of $11.6 million or 11 cents on revenue of $320 million in the first quarter of 2019.
"The bottom line is that this health crisis is hurting a lot of people," Mullen said in a statement.
He added: "We will see business decline, perhaps quite significantly in the short-term, however, I believe we will weather this crisis and come out of it stronger."