FedEx Corp., the Memphis-based logistics giant, confirmed plans to lay off 481 employees across five U.S. facilities as part of its ongoing Network 2.0 initiative, aimed at streamlining operations and reducing costs across its various divisions.
The layoffs include the planned closure of facilities in Greensboro, North Carolina, and Omaha, Nebraska, affecting 164 and 102 workers respectively. Additional staff reductions will occur at three locations that will remain operational: 81 layoffs at a Garland, Texas facility, 50 at a Plano, Texas site, and 84 in Des Moines, Iowa. The reductions will begin taking effect in September.
“These decisions are never taken lightly,” a FedEx spokesperson said. “All affected team members were notified several months ago, and many will be offered roles elsewhere within the company. We are committed to supporting employees through this transition with job placement services, relocation assistance, and severance packages as applicable.”
The job cuts are part of FedEx’s broader Network 2.0 initiative, which is designed to enhance efficiency and collaboration across FedEx Express, FedEx Ground, and FedEx Freight. The company expects to cut 100 station locations and reduce pickup and delivery routes by 10% by fiscal year 2027, while maintaining service capacity. FedEx projects $2 billion in annual savings from the program over the next two years.
In tandem with Network 2.0, FedEx is also implementing its DRIVE initiative, which has already produced $4 billion in savings over the past two fiscal years. Combined, the company expects both programs to deliver $1 billion in permanent cost reductions during fiscal year 2026.
Despite the recent layoffs and restructuring efforts, FedEx remains one of Memphis’ most iconic and economically significant companies. Founded in 1971 by Frederick W. Smith, the company revolutionized overnight shipping and made Memphis a global logistics hub.
The city’s central location and FedEx’s pioneering hub-and-spoke model turned Memphis International Airport into one of the busiest cargo airports in the world.
Over the years, FedEx has grown into one of the world’s largest transportation and logistics companies, with operations in more than 220 countries and territories. It has played a key role in Memphis’ economic development, employing tens of thousands in the region and contributing significantly to the local economy through jobs, infrastructure, and philanthropic efforts.
While the company continues to evolve to meet the demands of a competitive global market, its roots and economic impact in Memphis remain strong.
