YOUNGSTOWN, Ohio (WKBN) – A plan to consolidate FedEx nationwide has now hit the Valley.
Tuesday morning, workers at the FedEx Express warehouse in Youngstown told First News that the facility is closing in November. Employees say they were told they could relocate or accept a severance buy-out.
Workers also said many of FedEx’s drivers who remain will eventually be employed by a third party that may not offer the same pay or benefits workers receive now.
We’re told roughly 65 people work out of the Youngstown facility, but thousands more could be affected nationwide.
FedEx announced last May that it was closing 29 locations because of slowing demand.
FedEx also announced last April that it will combine the company’s air and ground shipping operations as part of a $4 billion cut. The company’s CEO announced a plan to streamline operations, writing at the time that the company wanted to offer what he called a “simplified experience” for its customers.
FedEx released the following statement to WKBN on Tuesday:
“FedEx regularly evaluates its networks and makes adjustments to align with the evolving needs of the business. The FedEx facility on Salt Spring Road in Youngstown will close later this year and certain team members will be offered opportunities at another nearby FedEx location on Bailey Court in East North Jackson or at the FedEx location on South Hermitage Road in Hermitage. Each market is unique and operational decisions such as this are based on a number of factors, including volume fluctuations, customer demand, facility footprints, and more.
Decisions of this nature are never made lightly, and are the result of much thought and consideration for the needs of our business. Affected team members are notified months before any changes take place, and are receiving assistance with finding other employment opportunities within the company, including additional support options like relocation assistance or severance where applicable.“
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Brian Oehlbeck and Kristen Hephner contributed to this report.