FedEx confirms layoffs, says 'small number of positions' eliminated: Here's what we know
Corey DavisFedEx Corp. is reducing its workforce.
The Memphis-based logistics giant confirmed to The Commercial Appeal on Thursday that it will decrease its headcount. However, FedEx wouldn’t provide any additional details on the layoffs
The following is the full statement from FedEx:
“We made the difficult decision to reduce a small number of positions as we streamline and realign functions. Decisions of this nature are never made lightly and are the result of much thought and consideration for the needs of our business. We are actively working with those affected by these changes to ensure they have the support they need during this transition.”
FedEx has more than 500,000 employees worldwide, according to its website. About 35,000 of those are in the Memphis region, according to data from the Greater Memphis Chamber.
In June, FedEx announced plans to restructure its European workforce and lay off up to 2,000 employees. FedEx stated it was going to streamline its workforce in Europe as part of ongoing efforts to reduce structural costs.
In September, FedEx reported a drop in operating income during its first quarter of fiscal year 2025. The shipping giant's revenue dipped slightly to $21.6 billion from $21.7 billion in the same quarter last year, while its reported operating income dropped to $1.08 billion, from $1.49 billion.
Net income dropped to $790 million, down from $1.08 billion during the same period last year.
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FedEx attributed the results to higher operating expenses, a reduced demand for priority services and a single fewer operating day for the quarter, but praised the DRIVE program's reduced structural costs for offsetting those numbers. The program is a multiyear effort to improve the efficiency with which FedEx picks up, transports and delivers packages in the U.S. and Canada.
FedEx recently celebrated the grand opening of its “Secondary 25” sorting facility at its World Hub at Memphis International Airport. The new 1.3 million-square-foot facility can handle approximately 56,000 packages per hour and has the capacity to sort more than 484,000 packages daily, said Lisa Lisson, FedEx president of air operations. The facility began operations in October.
The Secondary 25 facility has approximately 500 staff members and the expansion has added 85 new jobs, Lisson said. Those 85 new jobs are technician jobs to help ensure the automated systems are running efficiently.
Corey Davis is the Collierville and Germantown reporter with The Commercial Appeal. He can be reached at [email protected] or 901-293-1610.