(AP Photo/Seth Perlman, file)
Memphis, Tennessee (WREG) — FedEx announced Monday that it will close 29 FedEx Freight locations and consolidate its operations to other locations.
The changes will take effect on August 13 of 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 the decision to close 29 freight locations and consolidate its operations into others, effective August 13, 2023. We are constantly reviewing our network to ensure we have the right design to address changing market dynamics. Through In the process, we identified opportunities to consolidate operations at certain locations to improve customer service levels while lowering cost of service.
FedEx Freight is implementing additional leave for certain job categories effective May 28, 2023. Qualified employees will be offered permanent transfer opportunities to other markets with staffing needs. FedEx Freight will maintain health benefits for furloughed employees. This is a temporary workforce adjustment, and all employees who are released on or before August 25, 2023 will be recalled.”
Monday’s announcement comes months after the Memphis-based company announced that it would consolidate several companies, including FedEx Express, FedEx Ground, FedEx Services and other FedEx operating companies, into a single organization to increase efficiency.
The merger is expected to be fully implemented by June 2024.
FedEx also said earlier this year that it would lay off 10% of its global officers and directors in an effort to cut costs.