FedEx plans to layoff 173 workers at facilities throughout Southern California as part of a pandemic-era reorganization announced four years ago by the global logistics company.<\/p>\n
In letters filed with the state\u2019s Employment Development Department over the past month, FedEx attorney Robbin Hutton wrote that shipping facilities would be closed permanently in Palm Springs, Victorville and San Diego.<\/p>\n
The layoffs are effective Sept. 29 for 62 workers at a FedEx shipping hub<\/a> near the Palm Springs International Airport, and on Sept. 28 for 54 workers at a shipping hub in Victorville<\/a>. FedEx said that another 57 workers will be laid off at the end of August in San Diego<\/a>.<\/p>\n \u201cWe\u2019ve been undergoing a network transformation for several years to improve how we pick up, transport, and deliver packages across the U.S. and Canada,\u201d said FedEx spokesman David Westrick. \u201cAs we go through this transformation, some facilities must close. These decisions are never made lightly. We\u2019re committed to supporting impacted employees through job placement assistance, relocation aid, or severance. As of this time, there are no further Southern California closures planned.\u201d<\/p>\n The FedEx closures in Southern California come as part of \u201ca multi-year transformation plan<\/a>\u201d to combine its air and ground operations into a single logistics network. The massive overhaul targeted nearly $2 billion in savings annually by the end of 2027.<\/p>\n Earlier layoffs at FedEx facilities in the state have come as a result of the reorganization, including last year\u2019s 95 workers in Oakland<\/a> and 79 workers in Emeryville<\/a>.<\/p>\n The latest round of layoffs in Southern California bring to 347 total workers affected by FedEx\u2019s reorganization, dubbed officially as its \u201cNetwork 2.0\u201d initiative<\/a>. A layoff of 405 workers at Los Angeles International Airport in November 2023<\/a> was a result of FedEx relocating a heavy aircraft maintenance base to Indianapolis, and not a part of the Network 2.0 initiative.<\/p>\n The initiative has already led to the closure of more than 200 stations. FedEx is expected to close over 475 stations by the end of 2027, said Scott Ray, the carrier\u2019s chief operating officer for U.S. and Canada surface operations, at an investor day presentation in February.<\/a><\/p>\n