Mullen Group Fires 1,000 While Pandemic Slows Economy

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CALGARY – Mullen Group Ltd. trucking, logistics and oilfield service company says it has temporarily laid off approximately 1,000 people due to the impact of the COVID-19 pandemic control measures.

President and CEO Murray Mullen said the Calgary-based company outperformed the previous year until mid-March when demand for its services declined.

He says there has been a sharp drop in demand for consumer discretionary goods as well as in commodity-based industries, but his business of transporting fewer trucks and large pipes is doing well.

Mullen says the company has created a $ 5 million family assistance fund to help staff affected by the recession.

The company reported net earnings of $ 4.7 million or four cents per share on revenues of $ 318 million for the quarter ended March 31.

This is a drop from net income of $ 11.6 million or 11 cents on revenue of $ 320 million in the first quarter of 2019.

“The bottom line is that this health crisis is hurting many people,” Mullen said in a statement.

He added, “We will see a drop in activity, perhaps quite a bit.



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