MEMPHIS, Tenn. (WREG) — FedEx announced Monday it will close 29 FedEx Freight locations and consolidate its operations into other locations.
The changes will go into effect on August 13 this year.
FedEx explained the company’s decision in the following statement:
“As FedEx continues to adapt to an evolving global business environment, FedEx Freight has announced a decision to close 29 freight locations and consolidate its operations into other locations, effective Aug. 13, 2023. We continuously review our network to ensure we have the right design to address changing market dynamics. Through that process, we identified opportunities to consolidate operations in certain locations to improve customer service levels while lowering our cost to serve.
FedEx Freight is enacting an additional furlough for certain job classes beginning May 28, 2023. Eligible employees will be offered permanent transfer opportunities to other markets that have hiring needs. FedEx Freight will maintain health benefits for furloughed employees. This is a temporary workforce adjustment, and all furloughed employees will be recalled on or before Aug. 25, 2023.”
Monday’s announcement comes months after the Memphis-based company said it will consolidate multiple companies, including FedEx Express, FedEx Ground, FedEx Services and other FedEx operating companies, into one organization to increase efficiency.
The consolidation is expected to be fully implemented by June 2024.
FedEx also said earlier this year it was laying off 10% of its global officers and directors in an effort to reduce costs.