FedEx closes more U.S. locations as it changes how packages move
FedEx is streamlining its delivery network by consolidating operations, reducing redundancy, and focusing on higher-value packages. This transformation, dubbed Network 2.0, involves closing underperforming facilities and adjusting routes to optimize efficiency. As of 2026, FedEx has already shut down several locations in Missouri and California, affecting over 316 workers in total.
These closures are part of a larger, multiyear effort to combine previously separate Express and Ground operations, which now operate under a single corporate entity called Federal Express Corporation. The goal is to eliminate overlapping facilities and routes, allowing FedEx to move more packages through a denser network. While the overall parcel market continues to grow, FedEx aims to prioritize profitability by concentrating on premium services and higher-value shipments.
The company remains on track to achieve significant cost savings by the end of 2027 through this Network 2.0 initiative.
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