ArcBest is closing 1% of its terminals and reducing its workforce by 2% as part of a restructuring plan, the company announced Thursday.

The restructuring plan involves the closing of 10 service centers in smaller markets, consolidating operations with other nearby operations, the transportation conglomerate said in a securities filing.

The plan seeks to save $40 million annually, but initial implementation costs will exceed that, according to the securities filing.

Additionally, various brands including MoLo Solutions and Panther Premium Logistics will operate under the ArcBest brand effective Aug. 1, according to a news release. Its LTL brand, ABF Freight, will remain.

“Bringing MoLo and Panther capabilities together under one ArcBest brand better unifies us as one team for a more coordinated experience across our solutions,” Seth Runser, ArcBest president and CEO, said in the release, noting the simplified branding will help improve efficiency and profitability.

Among the transformation, ArcBest’s new service product, the faster-loading Vaux Freight Movement System and related technology, will be discontinued, the company said.

The staffing reductions also call for eliminating various open positions, the company further noted.

The Arkansas-headquartered transportation business, which draws its origins back to 1923, is making the moves to further strengthen its operations to continue that longevity, Runser said.