We have gotten very spoiled when it comes to how quickly our online orders get delivered.
Just a couple of years ago, circa 2018, we had to wait an average of three days for those Amazon packages to make it to the front door (10 years ago, it was more like six days).
Now, the average order-to-delivery time is 1.9 days, according to a 2024 Science Direct report. More and more consumers are demanding same-day delivery, and delivery companies are certainly scrambling to meet expectations.
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The industry that has made this magic happen and satisfy our collective “I want it now” desires — looking at you, Veruca Salt — is shipping and logistics. Business in this sector has been booming.
Companies like FedEx, UPS, and Amazon have invested billions in building faster, more efficient distribution networks to meet the demand for next-day and same-day delivery. Third-party logistics (3PL) providers have grown, giving retailers and manufacturers flexible, outsourced options for warehousing, shipping, and fulfillment.
The U.S. Postal Service has also upped its game, adding new services like Ground Advantage and Priority Mail Next Day to compete with UPS and FedEx.
FedEx is a leader in shipping and logistics, but relationships aren’t what they used to be.
Image source: Shutterstock
FedEx lays off hundreds of employees at a Texas facility
While the logistics business is growing, it’s simultaneously facing volatility. Contracts between logistics providers and their clients have become more transactional and performance-based, rather than long-term partnerships.
Companies will drop longstanding partners and switch to new providers if it means cost savings or faster delivery. Automation, robotics, and AI are also rapidly reshaping warehouse and supply chain operations, reducing the need for manual labor. All of this has made employment in the sector more vulnerable, with large-scale layoffs becoming increasingly common when business shifts.
That’s what’s happening now in Fort Worth, Texas, where FedEx (FEDEX) is laying off more than 300 employees after a major client decided to take its business elsewhere.
In a WARN notice filed with the Texas Workforce Commission, FedEx confirmed it will cut 305 jobs at its supply chain facility on Independence Parkway starting July 6, with layoffs continuing through October 25. The site currently employs about 580 people, meaning more than half the staff will be affected, as reported on Chron.
FedEx said the cuts are due to one of its clients moving part of its logistics operations to another third-party provider.
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“The FedEx customer that occupies space on Independence Parkway in Fort Worth will be transitioning a portion of its business to a new third-party logistics provider in a new location,” the company said in a statement. “We expect this transition to be complete at the end of October 2025,” per the Chron story.
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FedEx emphasized that the layoffs are not due to internal restructuring, but rather the result of changes in the customer’s business needs—something FedEx says it cannot control. Impacted employees will be offered severance packages, relocation support, and help finding other roles, either within the company or externally.
These cuts are sweeping across Texas, suggesting a broader trend in the Lone Star state. In addition to FedEx, companies like Chevron (200 jobs in Midland), Intel (as part of global cuts), and Lewisville ISD (500 school bus drivers) have all announced job reductions. In Fort Worth, nonprofit Child Care Associates may lay off over 300 workers due to federal funding uncertainty. The common thread: shifting contracts, budget constraints, and operational restructuring.
FedEx layoffs in Texas point to a trend unfolding across shipping and logistics
The outsourcing of logistics to 3PLs has made providers like FedEx vulnerable to abrupt customer shifts. Contract relationships used to be more long-term but are now increasingly fluid.
Companies are choosing partners based on pricing, technology, or delivery speed. The shifting nature of the business means dozens or even hundreds of jobs can disappear overnight when a contract gets canceled.
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Meanwhile, the push for automation and AI is changing warehouse operations, allowing companies to do more with fewer workers. And with interest rates and inflation still pressuring corporate budgets, cost-cutting has become a top priority — even if it means disrupting long-established operations.
Finally, regions like North Texas that have attracted large logistics investments are now exposed to the downsides of that growth. As companies reevaluate their supply chains and customer contracts evolve, these logistics hubs may face recurring waves of job instability.
In the end, the Fort Worth layoffs are a sign of how the logistics industry is being reshaped and how that transformation is impacting the workforce at every level.
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