Memphis, TN, August 16, 2025
News Summary
FedEx Supply Chain has announced layoffs at its Memphis locations as it transitions logistics work to a third-party provider. Affected employees at Quest Way and Challenge Drive will have opportunities to apply for other roles within the company. While the specific number of affected employees is undisclosed, the layoffs mark a significant operational shift due to a customer contract. FedEx is committed to supporting those impacted with job placement assistance and other resources.
Memphis, TN โ FedEx Supply Chain has announced plans to lay off employees at its two Memphis locations as it transitions a significant portion of its logistics work to a third-party provider. The layoffs will affect team members at the Quest Way and Challenge Drive facilities over the next two months.
The decision, which involves a change in operations, is expected to be implemented by October 2025. While many employees will find themselves without positions in the wake of this transition, FedEx has confirmed that there are opportunities for affected workers to apply for other roles within the company. The specifics of the third-party logistics provider taking over the operations have not yet been disclosed.
Although FedEx Supply Chain, which has served as the company’s main logistics provider since 2015, is undergoing this transition, some business operations at the Quest Way and Challenge Drive locations will continue. The layoffs are linked to a customer contract associated with one facility rather than broader strategic changes within FedEx. It is important to note that this decision is not related to the company’s Network 2.0 restructuring plan revealed earlier this year.
FedEx officials have assured employees that they were notified of the transition in advance and that the company is committed to providing support for those affected. This support will include job placement assistance, relocation aid, and severance where applicable. Additionally, opportunities at nearby FedEx facilities will be available for displaced workers.
The precise number of employees impacted by the layoffs has not been disclosed, but the decision marks a significant shift for FedEx Supply Chain operations in Memphis. The company has been an integral part of the local economy, providing numerous jobs and contributing to the logistics and supply chain sector.
As FedEx transitions a portion of its services to a third-party provider, it is taking steps to ensure that affected employees are well-informed and supported throughout the process.
=== Background of FedEx Supply Chain ===
FedEx Supply Chain has been a key logistics provider for FedEx since 2015, overseeing various supply chain solutions for numerous clients. It has played a crucial role in the companyโs operational success, helping to streamline logistics and improve efficiency across multiple sectors. However, the decision to contract a third-party provider marks a notable change in its operational strategy and raises questions about the future of logistics management within the company.
Despite these changes, FedEx remains committed to maintaining a strong workforce and ensuring its employees are given opportunities for new positions, demonstrating the company’s dedication to its team.
=== Key Features of layoffs and transition ===
| Feature | Details |
|---|---|
| Locations Affected | 4155 Quest Way, 5800 Challenge Drive in Memphis |
| Timing of Layoffs | Over the next two months, with transition complete by October 2025 |
| Employee Opportunities | Affected employees can apply for other roles within FedEx |
| Business Operations | Some operations at the Quest Way and Challenge Drive locations will remain |
| Support for Employees | Job placement assistance, relocation aid, severance where applicable |
| Reason for Transition | Linked to a customer contract, not related to FedEx’s Network 2.0 restructuring |
Where will the layoffs occur?
The layoffs will take place at FedEx Supply Chain locations at 4155 Quest Way and 5800 Challenge Drive in Memphis.
When will the layoffs happen?
Layoffs are expected to occur over the next two months, with the transition scheduled to be completed by October 2025.
How many employees will be affected?
The specific number of employees affected by the layoffs has not been disclosed.
What support will be provided to affected employees?
Affected employees will receive job placement assistance, relocation aid, and severance where applicable.
Is the transition part of a larger strategy?
No, the transition is linked to a customer contract and is not part of FedEx’s Network 2.0 restructuring plan.
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Additional Resources
- Fox 13 Memphis
- Action News 5
- WREG
- Local Memphis
- Commercial Appeal
- Wikipedia: FedEx
- Google Search: FedEx layoffs
- Google Scholar: FedEx layoffs
- Encyclopedia Britannica: FedEx
- Google News: FedEx layoffs
Author: STAFF HERE MEMPHIS WRITER
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