FedEx to Slash 856 Texas Jobs After Customer Moves Business
Reductions to Come in Phases and Be Completed by Late April; Some Workers Will Be Eligible for Other Roles
Key Takeaways:
- FedEx said it will shut a Coppell, Texas, logistics site and lay off 856 workers after a customer shifted its business to another provider.
- The company attributed the cuts to the customer’s relocation decision and noted they will occur in phases through late April.
- FedEx said some employees may move into other roles and receive assistance as the firm continues a broader restructuring of its shipping operations.
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FedEx Corp. plans to cut hundreds of jobs in Texas after a third-party logistics customer opted to move its business to a new location and a different company.
The Memphis, Tenn.-based courier will discontinue its operation of a Coppell, Texas, supply chain and logistics site and dismiss the 856 people who work there in phases, according to a Nov. 21 notice filed with the Texas Workforce Commission. The reductions are scheduled to be completed by late April, according to the notice.
“This action is necessitated solely by our customer’s decision to transition its business to a new location that will be managed by a new third-party logistics provider,” FedEx said in the notice, without identifying the customer.
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FedEx said it notified employees at the site about the move in advance and that some workers will be eligible for other roles within the company. The company will also provide “job placement assistance, relocation aid or severance, as applicable,” it said.
The move comes toward the end of a turbulent year for the logistics industry, which has been jolted by President Donald Trump’s trade policies that have strained key shipping lanes, especially between the U.S. and China.
FedEx is also undergoing a restructuring to merge its air and ground shipping operations into a single network. Its logistics business is separate from the larger parcel delivery operation.
FedEx ranks No. 2on the Transport Topics Top 100 list of the largest for-hire carriers in North America, No. 3 on the TT Top 100 global freight companies list and No. 43 on the TT Top 100 logistics companies list.
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