Johnson & Johnson is outsourcing its Memphis distribution center operation to FedEx Inc. unit Genco and says a "vast majority" of workers will continue to work there.
The health-care giant last week informed the Tennessee Department of Labor & Workforce Development that 122 of 127 affected workers would be outsourced to another company effective April 4, department spokeswoman Jennifer Farrar said.
The 770,000-square-foot facility at 3955 E. Holmes Road in Memphis Trade Center III was opened by Johnson & Johnson in 2003 to distribute diagnostic equipment and medical devices, including hip and knee replacements. It was aided by tax abatements that have since expired.
FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
Johnson & Johnson Health Care Systems Inc. spokeswoman Jennifer Taylor said in a statement, "In response to changing business needs, Johnson & Johnson will transition select operations and personnel at its Memphis Logistics Center to Genco, a FedEx company. The transition of these operations and the associated employees is planned to take place in April."
The statement continued, "Our highest priorities during this time will be minimizing any disruption to our customers and to treating our employees with the utmost respect, and while some job actions were taken last week, a vast majority of the employees at our Memphis Distribution Center received offers of employment from Genco."
FedEx bought Genco for $1.38 billion about a year ago to enhance its supply chain and logistics offerings. Genco is part of the domestic ground parcel delivery company FedEx Ground.
Genco, based in the Pittsburgh area, had a presence in Greater Memphis before the acquisition by FedEx.
It leased 533,000 square feet in Olive Branch's Crossroads Distribution Center in 2013.