FedEx Freight Plans Closure of 29 Locations
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FedEx Freight informed team members internally May 1 that it will be closing 29 freight locations and furloughing certain job classes.
The closures are part of an ongoing review of its network that aims to consolidate operations to adjust to market demand and changing dynamics. The locations are planned to be closed effective Aug. 13. FedEx Freight confirmed the internal announcement to Transport Topics.
“We continuously review our network to ensure we have the right design to address changing market dynamics,” a FedEx Freight spokesperson told TT. “Through that process, we identified opportunities to consolidate operations in several locations to improve customer service levels and improve efficiencies with fewer touchpoints, while lowering our cost to serve.”
FedEx Freight plans to work with employees affected by the closures to find other open positions and transfer opportunities, but the company will also work with them on things like severance.
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“Our top priority is to help affected team members find other open positions where possible,” the spokesperson said. “FedEx Freight will continue to strategically invest in network capacity in the future to support business growth and the needs of our customers. FedEx continues to maintain operations as normal, providing the essential services our customers depend on.”
FedEx Freight is enacting a furlough for certain job classes that will start May 28. The company also plans to work with employees affected by the furlough to find other opportunities.
“Eligible employees will be offered permanent transfer opportunities to other markets that have hiring needs,” the spokesperson said. “FedEx Freight will maintain health benefits for furloughed employees. This is a temporary workforce adjustment, and all furloughed employees will be recalled on or before Aug. 25, 2023. FedEx continues to maintain operations as normal, providing the essential services our customers depend on.”
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The internal announcement comes amid signs of slowing freight demand across the greater market. FedEx Freight also had announced it would put workers on furlough in some markets in November 2022. The company said at the time some of the furloughed workers were offered permanent transfers to areas that were hiring.
FedEx Corp. said at its investor event April 5 that it will be consolidating its operating companies into one organization. FedEx Express, FedEx Ground, FedEx Services and other operating companies will be joined together as a single operating company that integrates air and ground networks under the FedEx brand. The company expects full implementation by June 2024.
FedEx Corp. ranks No. 2 on both the Transport Topics Top 100 list of the largest for-hire carriers in North America and the TT Top 50 list of the largest global freight companies.