FedEx is the latest freight firm to announce layoffs. This week, the logistics giant revealed that more than 600 FedEx Supply Chain employees in Memphis would be fired as part of a business transition. According to Commercial Appeal, the company is moving “a significant portion” of its business to a new third-party provider.
In 2022, the company announced “Network 2.0,” a multi-year initiative to streamline operations. It laid off over 480 employees and revealed that facilities in Greensboro, North Carolina, and Omaha, Nebraska, would be closing. Reportedly, these latest layoffs are unrelated to “Network 2.0.”
Against a backdrop of tariffs and an ongoing labor shortage, the logistics sector is struggling. In recent weeks, several firms have laid off employees in a bid to improve their fortunes. Many are turning to technology as a long-term solution to their woes, with self-driving trucks and drones touted as potential remedies in the near-future.
FedEx to Lay Off Over 600 Supply Chain Employees
FedEx plans to let go of more than 600 employees from two of its Memphis facilities. On August 27th, the company filed a Worker Adjustment and Retraining Notification (WARN) notice with the Greater Memphis Workforce Development Board, which will coordinate a response with FedEx and the affected employees.
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As reported by Commercial Appeal, the decision forms part of a wider “business transition.” The company plans to relocate “a significant portion” of its operations to a new third-party provider, with the move expected to be completed in October 2025.
FedEx claimed that employees were made aware of the layoffs in advance, with many thought to be eligible for different roles in the company. In a statement, it said: “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.”
Layoffs Unrelated to “Network 2.0” Plans
“Network 2.0” is the multi-year initiative that FedEx announced in 2022 to streamline its operations and boost efficiency. Since then, the company has closed down over 100 shipping centers as it works towards a future in which driver routes do not overlap.
Most recently, the logistics giant laid off more than 480 employees and closed sites in North Carolina and Nebraska. Staff in Texas and Iowa were also subject to redundancies, but their sites remained open, albeit at reduced capacity.
The company has stated that the latest layoffs, however, do not form part of Network 2.0.
Technology Poses Solution to Logistics Industry Turmoil
It’s fair to say that it’s been a challenging year in the freight business. Between President Trump’s escalating tariff war and a mounting hiring crisis, logistics firms are in trouble. This is borne out by the sheer number that have been forced to let go of employees in 2025.
Companies are turning to technology to try and mitigate some of these issues. As revealed in our latest report, Moving Goods With Fewer Hands, 73% of surveyed respondents has already used technology to address “workforce challenges.”
While self-driving trucks are unlikely to enjoy a wide rollout in the near-future, businesses are already making use of fleet management software to optimize their route planning and delivery efficiency. What’s more, automation is bringing huge benefits to warehouses, with firms able to fulfil a higher volume of orders and enjoy a greater return on investment.
