Damon Lee
CFO at C. H. Robinson Worldwide
Our average headcount was down 11.2% year over year in Q2 and was down 3.7% sequentially, reflecting our dynamic workforce planning process that enables us to quickly adapt to changing market conditions. Based on our strong cost controls and productivity improvements through the first half of the year and the visibility we have into the back half, we are lowering our guidance for twenty twenty five personnel expenses to be in the range of 1,300,000,000 to $1,400,000,000 compared to our prior range of $1,375,000,000 to $1,475,000,000 This reflects our disciplined approach to managing our cost structure and our ability to drive efficiency while positioning the organization for long term growth, while remaining committed to further decoupling of headcount from volume. With low to mid teen turnover rates, we are well positioned to manage headcount primarily through natural attrition if needed. Our Q2 SG and A expenses were $142,000,000 Excluding 400,000 of other charges related to the divestiture of our European Surface Transportation business, SG and A expenses of $141,600,000 were down $800,000 year over year. We are also lowering our guidance for 2025 SG and A expenses to be in the range of $550,000,000 to $600,000,000 compared to our prior range of $575,000,000 to $625,000,000 This guidance includes depreciation and amortization of 95,000,000 to $105,000,000 Although most of our SG and A expenses are subject to inflation, we expect continued cost improvements to partially offset the inflationary impact.