- FedEx to eliminate 481 jobs and close distribution centers in North Carolina and Nebraska as part of its “Network 2.0” restructuring plan.
- The job cuts span facilities in Iowa, Nebraska, North Carolina, and Texas, with layoffs effective September 1.
- Network 2.0 aims to integrate FedEx Express and Ground operations and close 30% of US distribution centers by 2027, generating $2B in savings.
Cost-Cutting In Motion
FedEx has begun executing major workforce and facility reductions, reports CoStar. The company announced 481 job cuts across four US states. It also plans to shutter facilities in Greensboro, North Carolina, and Omaha, Nebraska. These actions are part of its multiyear transformation initiative known as Network 2.0, designed to streamline its sprawling delivery infrastructure.
Details On The Cuts
- Greensboro, NC: 164 jobs cut; 600K SF facility to close.
- Omaha, NE: 102 jobs cut; 90K SF facility to close.
- Des Moines, IA: 84 positions eliminated, though the facility remains open.
- Garland and Plano, TX: 131 total jobs cut; both facilities will continue operations with reduced headcounts.
FedEx stated that affected employees were notified months in advance, with job placement and severance support available.
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Network 2.0 Strategy
The consolidation effort is reshaping FedEx’s domestic logistics footprint by merging Ground and Express networks to improve efficiency and cut costs. Already, over 300 stations across the US and Canada have been “optimized,” and 2.5M packages are flowing through these restructured hubs.
CEO Raj Subramaniam confirmed during the company’s Q4 FY2025 earnings call that 30% of US distribution facilities will be closed by fiscal year 2027. The company aims to save $1B in FY2026 alone through ongoing consolidation.
Industry Backdrop
FedEx’s operational shakeup comes amid significant changes for the company. Its long-term contract with the US Postal Service ended in 2024, handing last-mile delivery duties to rival UPS. FedEx is also preparing to spin off its freight division into a standalone public company in 2026.
These shifts—combined with macroeconomic uncertainties and trade headwinds—have created financial volatility. FedEx reported no full-year guidance for 2026 due to international trade unpredictability and a projected $170M export revenue headwind.
Why It Matters
The cuts highlight the logistics sector’s growing emphasis on efficiency and cost control. As FedEx pivots to a leaner, more integrated operation, it’s signaling that even dominant players must adapt quickly to shifting demand and global pressures.
What’s Next
With a stated goal of cutting nearly a third of its US package network, more job reductions and facility closures are likely through 2027. Watch for further details as FedEx pushes ahead with the next phase of its network transformation.