FedEx (NYSE:FDX) has initiated the final phase of its multi-year operational overhaul, announcing plans to close nine shipping facilities across New York and one in Pennsylvania.
The move is part of the company's "Network 2.0" strategy, a massive initiative designed to integrate its legacy Express and Ground delivery operations into a single, unified surface network to eliminate redundant capacity.
The Memphis-based logistics giant aims to streamline its pickup and delivery routes so that most neighborhoods are serviced by a single van per day, rather than separate vehicles for different service tiers.
To date, FedEx has optimized more than 360 stations and closed over 200 locations.
According to Scott Ray, COO and President of U.S. and Canada Surface Operations, the company plans to optimize over 900 stations and shutter 475 locations by the end of 2027—representing a 30% reduction in its total national facility footprint.
The latest round of closures in New York, scheduled for June, includes stations in Binghamton, Elmira, Syracuse, Buffalo, Plattsburgh, Ithaca, Conklin, Watertown, and Utica.
In Pennsylvania, a facility in Pittston is slated to shut down on May 2, with delivery functions being absorbed by the nearby Wilkes-Barre ship center.
This specific closure will result in 63 layoffs, though FedEx noted that some affected employees may be offered alternative roles within the company.
Network 2.0 was conceived in late 2022 as a response to normalizing e-commerce volumes and increasing competition from Amazon and independent couriers.