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FedEx to terminate nearly 500 jobs, close two facilities

Moves coincide with strategy for streamlining logistics network

Eric Kulisch
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FedEx will close two package facilities later this summer as part of its multi-year network restructuring campaign. (Photo: Shutterstock/EchoVisuals)
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Key Takeaways:

  • FedEx is closing two distribution facilities and laying off over 480 employees by September 1st as part of its Network 2.0 consolidation program.
  • The closures will affect facilities in Greensboro, NC; Omaha, NE; Des Moines, IA; and Garland & Plano, TX.
  • Network 2.0 aims to integrate FedEx Express and FedEx Ground networks to improve efficiency and reduce costs.
  • This is part of a larger plan to close 30% of FedEx's parcel terminals within two years.
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FedEx plans to get rid of more than 480 workers and close two facilities by the fall as it moves forward with a huge network consolidation program. 

The integrated logistics provider disclosed the plans in public notices to workforce development agencies in four states.

FedEx (NYSE: FDX) said it will close package distribution stations in Greensboro, North Carolina, and Omaha, Nebraska, resulting in the elimination of 164 and 102 jobs, respectively. In a letter to the Nebraska Department of Labor, FedEx said it is relocating work at the Omaha facility to another one within 50 miles. 

The company also announced 84 positions will be eliminated at a facility in Des Moines, Iowa. Another 131 staff reductions are planned this summer at facilities in Garland and Plano, Texas. The closures and layoffs will take effect Sept. 1.

FedEx said the closures and layoffs are related to Network 2.0, a multi-year effort to integrate the separate FedEx Express and FedEx Ground networks for improved delivery efficiency and reduction of transportation costs. 

The Commercial Appeal, FedEx’s hometown newspaper in Memphis, Tennessee, broke the news about the latest layoffs and closures. FedEx said many workers will be offered other roles within the company, although that could require some of them to commute long distances or relocate.

FedEx executives said during a recent earnings presentation that it plans to close 30% of its parcel terminals within two years, as FreightWaves reported. In June, FedEx combined the operation of 63 stations across 20 local markets. So far, FedEx has optimized operations in 100 U.S. facilities. 

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

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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 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 Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com