FedEx Freight, the less-than-truckload unit of FedEx Corp. (NYSE: FDX), confirmed Tuesday that it is closing seven service centers across the U.S. this year as the division continues to make alignments to its freight network.
“As the less-than-truckload industry evolves, at FedEx, we are continuing to adapt our freight network to meet forecasted demand and make adjustments that align with the evolving needs of the business,” a FedEx spokesperson told FreightWaves.
The seven facilities to be closed later this year represent approximately 1% of FedEx Freight’s overall door count, and some team members will be offered opportunities at nearby FedEx locations, the company said.
No specific dates were given for closures. It’s unclear how many workers will be affected.
The seven service centers slated to be closed are in:
- Chicago Ridge, Illinois.
- London, Kentucky.
- Kenova, West Virginia.
- Mount Vernon, Illinois.
- Wilmar, Minnesota.
- Yuma, Arizona.
- Zanesville, Ohio.
“Decisions of this nature are never made lightly and are the result of much thought and consideration for the needs of our business. We remain committed to expanding where the volume is and is forecasted to grow,” the spokesperson said.
The company said FedEx’s freight footprint remains significantly larger than its LTL competitors.
“We have approximately 30% more doors than our closest competitor and approximately 40% more than our second closest competitor,” the FedEx spokesperson said.
FedEx Freight closed 29 U.S. service centers from May to August 2023 as part of its ongoing efficiency drive.