FedEx Freight to close 29 service centers by Mark Solomon

FedEx Freight, the less-than-truckload unit of FedEx Corp. (NYSE: FDX), will close 29 service locations in the U.S. as part of an ongoing efficiency drive.

The closures will occur by Aug. 13, the unit said Monday. The affected operations will be consolidated into other locations. The company is working with employees to find positions elsewhere in the system. It is unclear how many workers will be affected. There are 371 stations across the Ground system.

Separately, FedEx Freight will furlough an undetermined number of drivers for 90 days starting May 28 to adjust capacity with slowing demand. Eligible employees will be offered permanent transfer opportunities to other markets that have hiring needs, the unit said. FedEx Freight will maintain health benefits for the furloughed employees, the unit said.

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

There have been multiple driver furloughs at the unit since business began to slow months ago. The last was announced at the beginning of February. 

 

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