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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