As the economy continues in the doldrums, a number of transportation companies have announced restructuring initiatives and layoffs.

CNF Corp. says it is shaking up its troubled Emery Worldwide Airlines subsidiary by reducing Emery's aircraft fleet to 38, down from 54 aircraft a year ago. The carrier's network capacity has been reduced by 30 percent, and the company has laid off about 900 employees, representing 11 percent of its workforce. Gregory L. Quesnel, CNF's president and chief executive officer, says the cutbacks at Emery and a sharp reduction in operating costs will return the company to profitability. CNF will take a one-time charge of between $170 million and $200 million in the second quarter as a result of the restructuring.

Chutta Ratnathicam, CEO of Emery Worldwide, says the company, which has a strong next-day business, will focus additional efforts on its second-day and deferred services because those segments are projected to grow by 8 to 10 percent, in contrast to the 1-percent growth projected for the next-day segment. Emery also will intensify its efforts in what it calls its "asset-light" business segments, such as international air and ocean forwarding, customs brokerage, logistics management, and expedited delivery services.

Meanwhile, Airborne Inc., parent of Airborne Express, implemented a systemwide workforce reduction—the first in its 55-year history, the company said. Acting in response to the weakened economy, the carrier laid off approximately 640 employees or about 2.5 percent of its total workforce. The reductions hit all subsidiaries and nearly every organizational level, the company said.

Carl Donaway, Airborne's president and chief operating officer, says the company decided to make the workforce cuts when it saw no signs of an economic turnaround in the near future. The company will take a one-time charge of $3.1 million to $3.6 million in the second quarter for restructuring costs. Airborne expects those reductions will eliminate $26 million to $28 million in annual expenses.

Another air carrier, Atlas Air Worldwide Holdings, reacted to the economic pinch in similar fashion, cutting 200 employees last month and taking several aircraft out of service. Atlas Air Inc., the principal subsidiary of Atlas Air Worldwide, does not provide service directly to shippers but leases aircraft, along with crews, maintenance, and insurance to international aircargo carriers. The company says it will take a one-time charge of $40 million to $50 million in the second quarter to cover the costs of layoffs and restructuring. It expects a cost reduction of about $50 million a year.