FedEx expands facility closures and layoffs under Network 2.0

FedEx is implementing a multiyear restructuring initiative known as Network 2.0, which involves closing hundreds of shipping facilities and cutting thousands of jobs to reduce operating costs. The plan aims to consolidate the company’s historically separate Ground and Express operations into a single, integrated delivery system to eliminate overlapping routes and improve efficiency.

As of August, the company has already closed more than 200 locations, resulting in approximately 3,152 layoffs across the United States. FedEx is ultimately targeting a total of 475 facility closures. Regulatory filings indicate that optimization efforts have already affected roughly 390 locations across the United States and Canada as of February 2026. The full U.S. transformation is expected to be completed by the end of 2027.

While FedEx leadership states the changes are intended to improve margins and long-term financial performance through digital and artificial intelligence investments without significantly affecting transit times, the closures have raised concerns among local businesses regarding potential delivery delays. In some instances, such as an upcoming closure in Owensboro, Kentucky, affected employees are being offered internal placement assistance or transition packages.