FedEx announced on November 28 that it will close its Coppell, Texas logistics hub, eliminating 856 positions and ending operations at the site by April 29 2026. The first phase of layoffs will begin on January 16 2026, with the remaining workforce phased out over the next few months.
The shutdown follows a major customer’s decision to move its business to a third‑party logistics provider. FedEx said the closure is a targeted move under its Network 2.0 program, which seeks to merge Express and Ground operations, consolidate facilities, and streamline routes. Management projects up to $2 billion in cumulative cost savings from Network 2.0 by fiscal year 2027.
FedEx will rely on its remaining network and temporary staffing to meet holiday‑season demand. Company officials have stated that capacity will be maintained, but analysts note that the loss of a key hub could strain operations in the North Texas region during the busiest period of the year.
The facility shutdown comes amid a broader cost‑cutting push that has already impacted FedEx’s financial results. In the most recent quarter, revenue rose 2.3% to $22.2 billion but missed analyst expectations for earnings per share, reflecting a $0.24 EPS miss driven by higher operating costs and a weaker industrial economy. Guidance for the remainder of the fiscal year has been lowered, with management citing uncertainty in demand and the need to accelerate cost‑saving initiatives.
The Coppell closure is part of a larger restructuring that includes the planned spin‑off of FedEx Freight into a separate publicly traded company. Together, these moves signal a strategic shift toward higher‑margin services and a leaner, more efficient network. Investors are watching how the company balances short‑term operational challenges with long‑term cost discipline.
While no specific market reaction data is available, analysts have highlighted FedEx’s continued focus on cost reductions and the potential upside of the Network 2.0 program, even as the company navigates a challenging economic environment.
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