HOUSTON, TX - Major food distributor Sysco is cutting jobs at its shared services center in Cypress, Texas, in early 2019, according to a report by the Houston Chronicle. The number of layoffs has not been disclosed by the company, but Sysco has said the cuts are an effort to stay afloat amid rising transportation and food costs.

“As part of this initiative, the company anticipates the loss of employment for a modest number of associates at each of our U.S. broadline operating companies,” Sysco said in a statement. “We take seriously any decision that impacts our associates but feel this is a necessary step to better serve our customers and continue to position the company for success.”

While administration roles, like accounting, customer support, and payroll, allegedly could be the jobs under fire in this round of job cuts, a Sysco spokeswoman said the company also plans to hire other workers at its Cypress facility that will result in a net gain in jobs over the long term, the news source relays.

This year, a record-breaking trucking shortage rocked quite a few industries, with Sysco one of many unable to avoid the rising wages, overtime pay, and incentives needed to retain drivers in the current market.

“We continue to see expense challenges in the warehouse and transportation areas of our supply chain, which we anticipate will persist,” said President and CEO Tom Bené earlier this year. “We remain focused on the execution of our strategic priorities, which we believe will serve as the roadmap for additional growth and value creation.”

In a conference call with analysts, according to Seeking Alpha, Bené added: “Our problem is our operating expenses. They’re growing faster than what we’re getting on case growth. That’s our issue, and we’ve got to get back in check.”

Will Sysco’s latest strategy be enough to revive its bottom line? AndNowUKnow will continue to report.

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