Triumph reduces workforce amid freight downturn

Dallas-based Triumph Financial is cutting 5 percent of its workforce to reduce costs as technology investments have created redundancies, the company announced Aug. 20..In a message to employees, Founder, Vice Chair and CEO Aaron Graft said the decision was driven by both the prolonged freight downcycle — now in its fourth year — and the company’s evolving business strategy shaped by technology and automation. Triumph Financial offers banking, payments, factoring and intelligence solutions for transportation companies. The company’s stock has fallen more than 40 percent year-to-date. The $1.29 billion company expects the layoffs and other cost-saving measures will result in $4.5 million in aggregate charges along with $18 million to $20 million of annualized cash savings.As part of the changes, the company is also reorganizing its team structure around customer needs rather than individual product solutions, Graft said, a shift he expects will strengthen the company’s competitive position.“This is the first time in Triumph’s history we’ve had to take this step across the enterprise, and it is not a decision we made lightly,” Graft wrote. He said affected employees will receive severance packages and transition support.