FedEx to lay off 611 Memphis workers as auto parts manufacturing client moves out of state

FedEx Supply Chain informed the Tennessee Department of Labor that it will lay off a total of 611 workers at two distribution centers in Memphis by October 11.

FedEx Supply Chain, part of one of Tennessee’s largest employers, will permanently lay off 611 workers in Shelby County by Oct. 11, the company reported to the state’s labor department Wednesday.

The layoffs will affect two Memphis distribution centers at 4155 Quest Way and 5800 Challenge Drive — both of which are distribution locations for automotive parts manufacturer Cummins. Cummins contracted with FedEx Supply Chain in 2019 to distribute component parts, rebuild kits and remanufactured engines for the facilities.

Cummins is transitioning part of its Memphis-based aftermarket parts distribution to a new logistics partner at a facility in Indianapolis, a company spokesperson said Wednesday. The change is “driven by our need to improve efficiency and better support our customers,” the spokesperson said.

FedEx will retain “a portion of the business at this location,” and the transition is expected to conclude in October, according to a company statement.

FedEx Supply Chain notified employees of the layoffs earlier this month. Many affected employees will be eligible for other roles in the company, according to its statement. 

FedEx Corporation, an umbrella organization encompassing multiple FedEx companies, employs more than 39,000 people in Tennessee, the company reports. FedEx Supply Chain has more than 12,500 employees throughout more than 130 warehouses and distribution centers in the United States and Canada.

“We are committed to supporting affected employees — through job placement assistance, relocation aid, or severance, as applicable, including at other nearby FedEx facilities in the area,” the company stated.

A FedEx representative confirmed Wednesday that the layoffs are not related to the company’s ongoing “Network 2.0” plan, which aims to streamline FedEx’s package network.

This is the company’s second reported layoff this year; 217 employees were laid off at a Middle Tennessee facility in March, according to a notice filed with the state’s labor department.