Yellow Corp.—the third largest less-than-truckload carrier in the U.S.—plans to file for bankruptcy, the union that represents its employees announced Monday, leaving its 30,000 employees without work and U.S. taxpayers wondering how the company can repay the hundreds of millions of dollars the company received in a pandemic era loan from the government.

Some 30,000 employees are out of work Monday after the Teamsters Union announced Yellow, the third ... [+]

The Teamsters union—which represents employees at Yellow as well as UPS, Amazon and other companies—said it was served legal notice Monday that Yellow was ceasing operations and filing for bankruptcy.

Yellow uses some 12,000 trucks to move less-than-truckload freight—pallet-sized shipments smaller than a container but bigger than a parcel—across the country for companies such as Walmart and Home Depot.

An internal memo reviewed by the New York Times said the company was shutting down its operations on July 28 “and/or laying off employees at all of its locations, including yours.”

Satish Jindel, a trucking industry consultant, told CNN on Thursday he expected the company would be shut down by Monday after it stopped picking up new freight from customers.