FedEx has plans to slash 305 jobs at a facility in Fort Worth, Tex., according to a Worker Adjustment and Retraining Notification (WARN) Act notice filed with the state this month.
The notice notes that the company, which has already been on the layoffs path over the past year, will begin parting ways with impacted employees from the FedEx Supply Chain and Electronics facility on July 6.
A spokesperson for FedEx told Sourcing Journal via email that the company will make the cuts because a client has chosen to change providers.
“The FedEx customer that occupies space on Independence Parkway in Fort Worth will be transitioning a portion of its business to a new third-party logistics provider in a new location,” the spokesperson said via email, noting that the company expects the cuts to be complete by October of this year.
The spokesperson further noted the company would work to aid impacted employees.
“Team members at this facility were notified in advance, and many may be offered other roles within the company,” they said via email. “We are committed to supporting affected employees—through job placement assistance, relocation aid or severance, as applicable, including at other nearby FedEx facilities in the area.”
The layoffs will impact just over half—52 percent—of the approximately 580 workers employed at the location, which FedEx said is on Independence Parkway. In 2023, the company cut 280 jobs from the Fort Worth facility, which the company, at the time, attributed to a customer transitioning its business to a different facility and a new logistics provider.
The company has filed WARN notices notifying states of its plans to lay off employees in Maryland, Tennessee, Florida, California and North Carolina since the beginning of the year. And, according to the Memphis Business Journal, the company recently filed a WARN notice detailing its plans to lay off nearly 400 workers from a Jackson, Ga. facility in July.
The company has been working to cut costs under its Drive transformation program in an effort to cut $6 billion in costs by 2027; as part of that framework, the company plans to close some of its facilities and consolidate some of the routes it takes for delivery. Last year, it shuttered four facilities in North and South Carolina, as part of the initiative. The FedEx spokesperson did not mention the initiative as a reason for the Fort Worth layoffs.
John Dietrich, executive vice president and chief financial officer of FedEx, said in the company’s last earnings call in March that the company is on track to achieve the cost savings it had committed to by 2025—$4 billion against a 2023 baseline.
“As we committed, we continued to sequentially improve our Drive savings, and we expect even
further savings in Q4. We delivered $600 million of savings in Q3 compared to $390 million in Q1 and $540 million in Q2,” he told investors.
The company will provide a further update on Drive’s impact in June, when it next reports earnings.
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