Brad Jacobs, XPO Logistics CEO, will be stepping down from his position once the company’s spinoff tech-enabled brokerage is complete in Q4.
He will remain with XPO Logistics as Executive Chairman and will also become Non-Executive Chairman of the spinoff.
Mario Harik has been appointed President, North American less-than-truckload, and will succeed Jacobs.
The company plans to become a pure-play LTL transportation provider in North America by completing the brokerage spinoff and the divestiture of its European business.
“Under Mario’s leadership, we’ve made major advances in transforming our LTL business, as demonstrated by the strong second quarter results we announced today. Since taking over LTL last fall, Mario has driven marked improvements in operating ratio, pricing and network fluidity, as well as customer satisfaction and employee engagement,” said Jacobs.
“Mario has been key to XPO’s success since our earliest days, working side-by-side with me to build the company into an industry leader and innovation powerhouse. He has a deep understanding of our business, and he’s the architect of our industry-best technology platform. I’m confident that we’ll have a seamless transition from Mario’s current role as LTL president to his leadership of XPO as a standalone LTL company.”
In his first nine months as head of North American LTL, Harik improved the company’s operating efficiency to a record level in the second quarter of 2022. Over the same period, he enhanced pricing, excluding fuel impact, from a year-over-year gain of 6.0 per cent to 10.6 per cent, rebalanced the network and spearheaded high-impact technology deployments. In addition, Harik accelerated the growth strategy, doubling production run-rate at the company’s in-house trailer manufacturing facility and opening five new terminals, adding 345 net new doors toward a goal of 900 net new doors by year-end 2023.
“The opportunity ahead for XPO is enormous,” said Harik.
“We have a high-ROIC LTL business in an industry with substantial barriers to entry, durable end-market demand, secular tailwinds and strong pricing dynamics. Our network has a robust technological infrastructure and a highly engaged team with many long-standing customer relationships.
“In the seven years that we’ve owned the business, we’ve improved our adjusted operating ratio dramatically — now, our new growth strategy has created fresh momentum. I’m excited to continue working with Brad and the team to create a world-class LTL carrier.”
In other news, XPO Logistics reported its highest revenue in Q1 results history.