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.
Tennessee Lookout reported earlier that the FedEx job losses were associated with Cummins. Cummins 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 company spokesperson told the news outlet.
“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.
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