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FedEx Network 2.0 closures hit California, Massachusetts

This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. FedEx is closing three more U.S. ship centers on June 2 to streamline its network as it continues to merge its separate Express and Ground delivery operations. The following locations will shut down on that day as part of FedEx's Network 2.0 initiative, according to Worker Adjustment and Retraining Notification (WARN) Act notices: West Boylston, Massachusetts, ship center, impacting 78 employees Emeryville, California, ship center, impacting 79 employees Oakland, California, ship center, impacting 95 employees Affected employees will be provided with job placement assistance, relocation aid, or severance as applicable, FedEx spokesperson David Westrick said in an emailed statement. For example, a WARN Act notice filed for the Massachusetts ship center said the majority of its impacted employees will shift to nearby locations within 50 miles. "Team members at these facilities were notified several months ago, and many will be offered other roles within the company," Westrick said. At least 25 FedEx ship centers have seen closures or staffing cuts since 2023, with several occurring this year. The company's multiyear Network 2.0 overhaul is driving the reduction, as it looks to eliminate overlapping operations and trim costs. The overhaul is helping FedEx reduce its pickup and delivery costs by 10% for markets it has fully rolled out the program, President and CEO Raj Subramaniam noted in a December earnings call. Ship centers Supply Chain Dive has confirmed will close or reduce staffing since 2023 This embedded content is not available in your region. FedEx resumed its Network 2.0 push after the peak holiday shipping season, Subramaniam said on a Q3 earnings call in March. Five facilities have been "optimized" for the initiative since the start of the year, with 45 more to follow in Q4, he said. As a result of that progress, about 12% of FedEx's average daily volume globally will run through Network 2.0-integrated stations by the end of fiscal year 2025, which falls on May 31. That percentage is poised to spike the following year. "By the end of FY '26, we expect that number to be about 40%," Subramaniam said. Recommended Reading FedEx Network 2.0 consolidation spreads to 8 more locations