FedEx Lays Off 173 Southern California Workers

FedEx Corporation is eliminating 173 positions and permanently closing shipping facilities in San Diego, Victorville, and Palm Springs, California. The layoffs will occur in phases, starting with 57 workers in San Diego at the end of August, followed by 54 in Victorville on September 28 and 62 in Palm Springs on September 29. Affected roles include couriers, shuttle drivers, warehouse workers, managers, and administrative service agents.

These closures are part of the Network 2.0 initiative, a multi-year reorganization merging air and ground operations into a single logistics network. The company aims to simplify service through a one van, one neighborhood model to achieve nearly $2 billion in annual savings by the end of 2027. This overhaul involves closing approximately 475 stations, representing 30% of the company's footprint.

FedEx stated it will provide impacted employees with severance, relocation aid, or job placement assistance. The company's reorganization coincides with broader workforce reductions in Southern California, including layoffs at Staples, Essendant, LAZ Parking, and Amazon delivery partners Xpress Delivery and OnPoint Logistics.