Sign In Newsletters Contact Us
American ShipperLayoffs and BankruptciesLogisticsNews

FedEx Supply Chain to layoff 600 workers at Cummins warehouse

Engine maker to relocate some distribution work from Memphis facility

Eric Kulisch
·
FedEx Supply Chain operates warehouses for clients across the country, including this one in Charlotte, North Caroline. (Photo: Shutterstock/Kirkam)
Gemini Sparkle

Key Takeaways:

  • FedEx Supply Chain will lay off 611 employees in Memphis by mid-October.
  • The layoffs are due to Cummins Inc. moving its parts distribution to a new logistics partner in Indianapolis.
  • The transition is expected to be complete by October 2025, with FedEx retaining a portion of the business.
  • Affected employees may be offered other roles within FedEx, relocation aid, and job-placement assistance.
Key takeaways sponsored by SONAR
See a mistake? Contact us.

FedEx Supply Chain, the contract logistics arm of FedEx Corp., will permanently layoff 611 employees at two neighboring distribution centers in Memphis, Tennessee, by mid-October, according to a notice filed Wednesday with the state’s department of labor and workforce development.

The layoffs impact facilities at 4155 Quest Way and 5800 Challenge Drive, which belong to truck engine manufacturer Cummins Inc. The Columbus, Indiana-based company hired FedEx Supply Chain in 2019 to operate the facility and distribute component parts, rebuild kits and remanufactured engines to Cummins (NYSE: CMI) dealers across North America. FedEx (NYSE: FDX) also deployed proprietary warehouse management technology for parts stocking, fulfillment and returns management.

The FedEx job losses are associated with Cummins. The manufacturer is moving part of its aftermarket parts distribution to a new logistics partner at a facility in Indianapolis for efficiency and customer-service reasons, a spokesperson Melinda Koski said in statement.

Tennessee Lookout reported earlier on the connection between the FedEx jobs and Cummins.

“The FedEx Supply Chain customer that occupies space at 4155 Quest Way and 5800 Challenge Drive in Memphis will be transitioning a significant portion of its business to a new third-party logistics provider in a new location, and we expect this transition to be complete in October 2025. We are retaining a portion of the business at this location,” FedEx said in a statement.

Many employees will be eligible for other roles in the company, as well as relocation aid and job-placement assistance. 

The layoffs are not connected to FedEx’s Network 2.0 restructuring of its FedEx Express and FedEx Ground parcel delivery divisions, which involves combining the footprint of the dual networks and reducing jobs to operate more efficiently.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

Write to Eric Kulisch at ekulisch@freightwaves.com.

FedEx sends specialists to streamline European operations

Richard Smith nominated to FedEx board, opening succession path to CEO

Eric Kulisch

Eric is the Parcel and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He was runner up for News Journalist and Supply Chain Journalist of the Year in the Seahorse Freight Association's 2024 journalism award competition. In December 2022, Eric was voted runner up for Air Cargo Journalist. He won the group's Environmental Journalist of the Year award in 2014 and was the 2013 Supply Chain Journalist of the Year. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com