FedEx Freight will close 29 service centers

FedEx Freight will close 29 locations, furlough another round of drivers (Photo: Jim Allen/FreightWaves)

FedEx Freight, the less than truckload unit of FedEx Corp. (NYSE: FDX), has closed 29 service locations in the United States as part of an ongoing efficiency drive.

On Monday, the unit said the shutdown would occur by Aug. 13. Affected processes will be merged into other sites. The company works with employees to find jobs elsewhere in the system. It is unclear how many workers will be affected.

Separately, FedEx Freight will furlough an unspecified number of drivers for 90 days starting May 28 to adjust capacity as demand slows. The unit said qualified employees will be offered permanent transfer opportunities to other markets with recruitment needs. The unit said FedEx Freight will maintain health benefits for furloughed employees.

This is a temporary workforce adjustment, the company said, and all employees furloughed on or before August 25 will be recalled.

There have been several furloughs for drivers in the unit since work began to slow months ago. It was last announced at the beginning of February.

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