FedEx announces Southern California layoffs and facility closures

FedEx is implementing significant job cuts and facility closures across Southern California as part of its ‘Network 2.0’ initiative. The overhaul aims to merge the company’s ground and express delivery networks to streamline operations and achieve approximately $2 billion in annual savings by 2027.

Recent layoffs in California include 62 workers at a shipping hub near Palm Springs International Airport and 54 workers at a Victorville hub, both scheduled for late September. These follow 57 layoffs at a San Diego facility in August. Combined with other regional cuts, the initiative has affected hundreds of California-based employees.

Beyond workforce reductions, FedEx is investing in automation and AI-driven route optimization to compete with rivals like Amazon. The company has already closed more than 200 stations and plans to close approximately 475 more by the end of 2027, representing about 30% of its total footprint. FedEx stated that affected employees are being offered support through severance, relocation aid, or job placement assistance.