FedEx Freight To Close 29 Locations

FedEx Freight revealed that it would shut down 29 locations later this year and commence another set of furloughs for some employees by the end of May. The company plans to close and consolidate the 29 operations effective August 13.

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“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.”

Furthermore, FedEx said that it will offer eligible employees “permanent transfer opportunities” to other markets with hiring needs, and that employees who are furloughed will continue to receive health benefits.

“This is a temporary workforce adjustment, and all furloughed employees will be recalled on or before Aug. 25, 2023,” FedEx added. “FedEx continues to maintain operations as normal, providing the essential services our customers depend on.”

This decision is likely due to decreased demand and rising costs, similar to what FedEx encountered last December when it also furloughed an undetermined number of employees.

Although FedEx Freight did not disclose how many employees this new furlough would impact, the company said that it would only be a small number.

While FedEx is in a yearlong reorganization of its numerous operating companies such as FedEx Express and FedEx Ground into a single organization under the FedEx Express Corporation name, it specifically excluded FedEx Freight from this corporate realignment.

For LTL shippers, this temporary cost savings move will unlikely mean any significant changes in their operations.

FedEx Freight is the LTL (less-than-truckload) division that handles goods, commodities, or cargo that weighs more than 150 lbs and is usually palletized.

Generally, the Freight division is mostly a B2B business, but FedEx Freight also operates the FedEx Freight Direct program, an ecommerce solution for larger items delivered to residential addresses.