FedEx will lay off 843 employees at five warehouses in the coming months, according to a Worker Adjustment and Retraining Notification (WARN) Act notice. Three of the cuts involve FedEx supply chain facilities, while the rest affect the company's shipping centers.

FedEx Ship Centers has made two layoffs as the company moves forward with its network integration plans for its Express and Ground divisions. The company will close the affected warehouses in Colorado and Ohio and transfer some employees to other warehouses.

Three of the layoffs involved FedEx Supply Chain, a subsidiary that provides third-party logistics services. The layoffs in Texas, Pennsylvania and Indiana were caused by customers moving their business to other logistics providers.

The following are the details of the layoffs:

FedEx said it is helping affected employees find other job opportunities at other FedEx warehouses. FedEx linked the supply chain layoffs to its decision to divert customer packages to other competitors. FedEx said in a statement about the ship center closures that it has made adjustments to its logistics transportation network to meet changing business needs.

As part of its Network 2.0 initiative, FedEx is cutting the number of stations and pickup and delivery routes in its transportation network. For many locations in the U.S., FedEx Ground contractors will deliver both Ground and Express packages, enabling FedEx to reduce operating costs.

Most of the employees affected by the closures in Colorado and Ohio are couriers, as are previously announced closures of ship centers in Texas, Georgia and Mississippi.

The cuts will result in a leaner FedEx Corp. President and CEO Raj Subramaniam said on a June earnings call that its U.S. workforce was reduced by about 29,000 in fiscal 2023, which ends May 31, exceeding the company’s goal.

"We will continue to actively manage headcount, including attrition, to align our teams with the ongoing network transformation," Subramaniam said.

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