FedEx is closing hundreds of shipping facilities and cutting thousands of jobs as part of a multiyear effort to overhaul its U.S. delivery network and reduce operating costs.
The company has already closed more than 200 locations nationwide under its Network 2.0 initiative, according to data cited by The Sun from Supply Chain Dive. The closures have resulted in about 3,152 layoffs across the United States as of August.
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FedEx is ultimately targeting 475 facility closures as it consolidates its historically separate Ground and Express operations. The company expects the U.S. transformation to be completed by the end of 2027.
The restructuring is designed to eliminate overlapping delivery routes, simplify operations and reduce costs. FedEx has said the integrated network will allow the company to use a single delivery system in areas that previously relied on separate Ground and Express operations.
FedEx has been implementing Network 2.0 for several years. Its latest regulatory filing said the company had implemented Network 2.0 optimization at approximately 390 locations in the United States and Canada as of Feb. 28, 2026, with the U.S. rollout expected to continue through 2027. The company has also said the changes are intended to improve efficiency without significantly affecting customer transit times.
However, the closures have raised concerns among some customers and local businesses. In Syracuse, New York, a business owner cited by The Sun questioned whether eliminating nearby facilities could eventually affect delivery times. FedEx has separately announced facility closures in several communities as part of the network transformation. In Owensboro, Kentucky, for example, the company said a FedEx Ship Center would close on August 29, with some employees offered other positions within the company.
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The restructuring comes as FedEx seeks to build a more efficient network while investing in digital and artificial intelligence capabilities. At its 2026 Investor Day, the company said network transformation would be a key part of its strategy to improve margins and long-term financial performance.
For workers, however, the transition means continued uncertainty as additional facilities are consolidated or closed. FedEx’s broader transformation is expected to continue through 2027.