900 Jobs Lost as FedEx Logistics Hub Shuts Down in North Texas
FedEx, the global logistics and shipping giant, has announced a significant workforce reduction and the permanent closure of a large logistics facility in Coppell, Texas.
The move will affect approximately 856 employees. This is a direct result of a major customer transitioning its business to a different third-party logistics provider.
The Trigger: A Major Customer’s Departure
The loss of a key client solely necessitated the decision to shut down the FedEx Supply Chain Logistics & Electronics Inc. operation in Coppell.
According to a Worker Adjustment & Retraining Notification (WARN) notice filed with the Texas Workforce Commission on November 21, the unnamed customer opted to move its business to a new location, which a competitor will manage.
This event underscores a major vulnerability in the modern logistics and supply chain sector.
Contracts between 3PL (third-party logistics) providers and their clients have become increasingly transactional and less reliant on long-term partnerships.
This environment allows large customers to switch providers rapidly based on cost savings, technology advancements, or faster delivery guarantees.
Abrupt operational shutdowns and mass job losses occur when contracts are terminated due to this switching.
FedEx Phased Layoffs and Facility Timeline
The Coppell facility will close permanently. The Coppell facility shutdown, located roughly 21 miles northwest of downtown Dallas, will finalize by the end of April 2026.
The layoffs will occur in phases, tied to the facility’s winding down of production volume:
- The company is scheduled to terminate the first wave of 62 employees starting January 16, 2026.
- FedEx will gradually lay off the remainder of the 856-person workforce over the subsequent months. FedEx is scheduled to complete all separations by the end of April.
FedEx confirmed that none of the affected employees are unionized, and the company stated its commitment to supporting the displaced staff.
The company will continue to pay wages and benefits through each worker’s final day of employment.
Employees may be eligible for job placement assistance, relocation aid, or severance packages.
Furthermore, FedEx is offering some workers the opportunity to transfer to other available roles at nearby facilities within its network.
Wider Industry and Corporate Context
The Coppell job cuts are not an isolated event.
Instead, they represent the latest action in a broad, ongoing trend of streamlining and cost-cutting across the logistics industry and within FedEx itself.
FedEx has been aggressively pursuing its DRIVE cost-cutting program. This initiative aims to achieve $4 billion in permanent cost reductions by the end of fiscal year 2025.
This initiative involves optimizing its network and integrating its separate FedEx Express and FedEx Ground operations—a strategy dubbed Network 2.0.
Earlier in the year, FedEx announced other significant workforce reductions.
These included 305 job eliminations at a Fort Worth facility and layoffs at sites in North Carolina and Nebraska.
Under CEO Raj Subramaniam, the company is implementing these measures to adapt to cooling post-pandemic delivery demand and global economic uncertainty.
They are also dealing with intense competition from rivals like UPS (which also announced mass job cuts) and Amazon’s growing delivery infrastructure.
The push toward automation and integration of artificial intelligence (AI) is rapidly reshaping the labor needs of the sector.
This contributes to a broader climate of job instability.
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