FedEx closing more locations, planning to furlough employees
FedEx announced on Monday it will close 29 FedEx Freight locations, furloughing another round of employees as a result of slowing demand.
The closures will be in effect by August 13, and the company will consolidate its operations into other FedEx locations, FedEx Manager of Global Public Affairs and Advocacy Isabel Rollison told The Hill.
“We continuously review our network to ensure we have the right design to address changing market dynamics,” FedEx said in a statement. “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.”
“Our top priority is to help affected team members find other open positions where possible,” the statement continued.
The FedEx Freight closures come less than a month after the company announced in early April it will combine the company’s air and ground shipping operations as part of a $4 billion cut because of slowing demand.
Rollins also said FedEx Freight will enact an additional furlough for certain job classes starting May 28, in which “eligible employees will be offered permanent transfer opportunities to other markets that have hiring needs.” FedEx Freight will also maintain health benefits for furloughed employees, Rollins added.
“This is a temporary workforce adjustment, and all furloughed employees will be recalled on or before Aug. 25, 2023,” FedEx said in its decision. “FedEx continues to maintain operations as normal, providing the essential services our customers depend on.”
The company’s moves were first reported by The Commercial Appeal in Memphis, Tenn.
— Updated 1:40 p.m.
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