In an internal memo obtained by The Maritime Executive, XPO Logistics CEO Brad Jacobs announced his plan to step down as head of the third-party logistics provider in order to be succeeded by XPO’s former president and chief operating officer, Mario Harik. This will be effective on Jan. 1, 2018, according to the memo. It has been my honor and privilege to serve as your CEO during the past three years, said Jacobs in the memo which was sent to XPO employees on Tuesday, October 10, 2017. We’ve made great progress and it’s time for me to step aside.

XPO Logistics Announced Thursday

XPO Logistics Announced Thursday
Image Source: Barron’s

XPO Logistics announced Thursday that Mario Harik will succeed Brad Jacobs as CEO following the spin-off of its high-tech truck brokerage business in the fourth quarter.

Harik was also elected as the president of XPO’s less-than-truckload division. Since October last year, he served as acting president.

Jacobs will be staying on as Chairman of XPO and Chairman of the spun-off company. Mario is the best person to do the job,” he said of his successor. “Mario is the third person I hired in 2011.” We were in love at first sight!”

The Company Has also Reaffirmed its Plan

The Company Has also Reaffirmed its Plan
Image Source: Freight Waves

The company has also reaffirmed its plan to sell off its European business and become a trucking company offering LTL trucking, which allows multiple customers to transport goods on the same truck.

When Cramer asked Harik how customers’ concerns about inflation and a recession have affected business, the incoming CEO said that feedback has been mixed. Harik said that demand is slightly lower than last year. He also noted that demand from industrial customers has been strong because they have an excess demand from their own customers as supply shortages lessen. According to Harik, XPO’s customers are two-thirds industrial companies.