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FedEx is moving forward with significant job reductions and facility closures in the U.S. as part of a multiyear effort to streamline operations and cut costs, according to CoStar.
The Memphis-based logistics company is set to eliminate 481 positions and shut down two distribution centers in North Carolina and Nebraska, according to recent filings submitted under the federal Worker Adjustment and Retraining Notification (WARN) Act.
The job cuts and closures span across facilities in Iowa, Nebraska, North Carolina, and Texas. These changes are part of the company’s broader transformation strategy, branded as “Network 2.0,” which aims to consolidate FedEx’s Express and Ground operations throughout the U.S. and Canada.
The initiative is expected to save the company $2 billion by the end of fiscal 2027.
The most significant job losses include 164 roles in Greensboro, North Carolina, tied to the closure of a nearly 600,000-square-foot distribution center.
Omaha, Nebraska, will also see 102 job losses with the closure of an 89,000-square-foot facility. Most of the Omaha operations will be moved to another site within 50 miles.
Additional staff reductions include 84 positions in Des Moines, Iowa, and 131 in the Dallas area, split between Garland and Plano, Texas. Although these Texas facilities will remain open, they will operate with reduced headcounts.
Layoffs at all affected locations are set to begin on September 1.
So far, FedEx has optimized more than 300 facilities across North America, with about 2.5 million packages moving through these updated sites. The company has already closed 100 shipping stations and merged nearly 290 hubs.
FedEx aims to shut down 30% of its U.S. package facilities over the next two years as it continues to align its operations for greater efficiency.
These cost-cutting moves come during a period of major transition for the company. FedEx recently lost a longstanding contract with the U.S. Postal Service, which instead selected UPS. That loss is projected to result in a short-term revenue decline of $120 million, with an additional $170 million impact expected from international export challenges.
Looking ahead, FedEx is preparing to spin off its freight division into a separate publicly traded company by June 2026. Despite headwinds from shifting trade dynamics and market uncertainty, FedEx leadership says it is focused on areas it can control, emphasizing long-term savings and operational flexibility.
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