Yahoo Finance FedEx Freight closing and consolidating 29 locations; furloughs planned
MEMPHIS, Tenn. − FedEx Freight is closing 29 locations later this year and will begin another round of furloughs for some employees at the end of May, the company announced Monday.
FedEx Freight plans to close the locations and consolidate its operations into other locations effective Aug. 13. When asked about where the locations set for closure are, a FedEx spokesperson said the company did not have "that information to share at this time."
“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.”
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The announcements come less than a month after FedEx announced a phased transition to consolidate FedEx Express, FedEx Ground, FedEx Services and other FedEx operating companies into Federal Express Corporation. However, FedEx confirmed FedEx Freight would remain a stand-alone company and continue to provide less-than-truckload freight transportation services.
FedEx Freight handles bulk shipping with any shipment more than 150 pounds considered freight, according to the company. FedEx Freight has about 400 service centers and 46,000 team members, according to its website.
The latest round of FedEx Freight furloughs “for certain job classes” will begin May 28.
FedEx said eligible employees will be offered “permanent transfer opportunities to other markets that have hiring needs” and that furloughed employees will maintain health benefits.
“This is a temporary workforce adjustment, and all furloughed employees will be recalled on or before Aug. 25, 2023,” FedEx said on the decision. “FedEx continues to maintain operations as normal, providing the essential services our customers depend on.”
FedEx Freight announced an initial round of furloughs in November due to slowing demand and a second round in February. The company did not specify the number of workers impacted by that wave of furloughs on the previous two occasions.
FedEx did not say how many employees would be impacted on Monday. "It's a very small percentage of total FXF (FedEx Freight) employees that will be impacted," a spokesperson told The Commercial Appeal.
The cost-cutting decisions from FedEx continue as the logistics giant looks for greater savings due to decreasing demand and high operating costs following a series of disappointing quarterly earnings reports.
Omer Yusuf covers the Ford project in Haywood County, FedEx, tourism and banking for The Commercial Appeal. He can be reached via email Omer.Yusuf@commercialappeal.com or followed on Twitter @OmerAYusuf.
This article originally appeared on Memphis Commercial Appeal: FedEx Freight locations closing, consolidating; furloughs announced
