AI-written summary synthesised from 2 independent reports, listed below. No human editor reviewed this. AI can misread or omit facts — read the originals.
ABSTRACT

FedEx is eliminating 173 positions across Southern California as it closes facilities in Palm Springs, Victorville, and San Diego, according to government filings and a company statement. The Palm Springs and Victorville closures will affect 116 employees at the end of September, while a separate filing from June 23 covers 57 layoffs at the San Diego location, according to the Los Angeles Times.

FedEx closes three Southern California facilities, cutting 173 positions as broader restructuring continues

FedEx closes three Southern California facilities, cutting 173 positions as broader restructuring continues

FedEx is eliminating 173 positions across Southern California as it closes facilities in Palm Springs, Victorville, and San Diego, according to government filings and a company statement. The Palm Springs and Victorville closures will affect 116 employees at the end of September, while a separate filing from June 23 covers 57 layoffs at the San Diego location, according to the Los Angeles Times.

Context

FedEx stated that affected employees were notified months in advance and that some were offered positions elsewhere within the company. The company also said it would provide job placement assistance, relocation aid, or severance where applicable, according to the LA Times.

The closures are part of a broader initiative, announced in 2022, to merge the company's ground and express delivery networks and streamline package pickups and deliveries. FedEx says it expects to generate $2 billion in savings through these optimization efforts, according to the LA Times.

According to the LA Times, Scott Ray, FedEx's chief of operations in the U.S. and Canada, said at an investor day presentation in February that the company had already closed 200 stations and plans to close approximately 475 more by the end of 2027. Those additional closures would represent about 30% of the company's overall footprint.

Ray also said that while earlier phases focused on smaller centers, the remainder of 2026 and the completion of the project by end of 2027 would concentrate on larger metro areas, according to the LA Times.

According to the LA Times, FedEx closed facilities in Emeryville and Oakland last June, laying off 174 employees in that round.

The New York Post noted that FedEx is also investing in automation as part of its broader transformation.

The Southern California FedEx cuts are among more than 500 job losses recently recorded in the region. According to the LA Times, other companies filing layoff notices include Staples, which will cut 109 employees at a fulfillment center in La Mirada on October 9, and its subsidiary Essendant, which announced 99 layoffs in Sacramento and four more in Perris, having already permanently closed a Perris facility last December. Essendant has issued more than 1,100 layoffs across five other states, according to the LA Times.

LAZ Parking, a parking management company, laid off 247 employees from locations near LAX and Ontario International Airport, according to the LA Times. The company signed a $19.1-million contract in May with Laguna Beach to run its transit services.

According to the LA Times, two Amazon delivery service partners also recently curtailed operations in the region: Xpress Delivery in Oakland will lay off 80 employees, and OnPoint Logistics will cease operations at its San Francisco location, cutting 96 jobs.

All Perspectives
FedEx: Employees were notified months in advance, and some were offered roles elsewhere within FedEx. The company said: 'These decisions are never taken lightly and reflect our commitment to supporting affected employees — through job placement assistance, relocation aid, or severance, as applicable — while transforming our network and continuing to provide an outstanding experience for our customers.' For customers who previously used the closing locations for package drop-off, other locations offering these services can be found at www.fedex.com.
FedEx COO Scott Ray: At an investor day presentation in February, Ray said the company had closed 200 stations and would close approximately 475 more by the end of 2027, representing about 30% of the company's footprint. He noted that through the rest of 2026 and the project's completion, the focus would shift to optimization in larger metro areas.
Position not represented in the source reporting: Affected FedEx workers and any employee representatives.

Where sources differ

  • The total number of FedEx positions eliminated in Southern California differs between sources: the New York Post reports 173 jobs cut across all three facilities combined, while the LA Times reports 116 layoffs tied to the Palm Springs and Victorville closures plus 57 from a separate June 23 filing for San Diego, which together sum to 173 but are presented as distinct filings rather than a single consolidated figure.
Gaps & Unknowns
  • The sources do not provide responses or comment from affected workers or any labor union representing them.
  • The sources do not specify the exact closure dates for the Palm Springs and Victorville facilities beyond 'end of September.'
  • The sources do not detail what proportion of the 173 affected employees accepted offered roles elsewhere within FedEx.
  • The sources do not describe the specific automation investments FedEx is making beyond a general reference in the New York Post.
  • The sources do not indicate whether any regulatory or government review of the layoff filings is underway.
Sources & Further Reading
  1. New York Post — original — by Daniel Farr
  2. LA Times — by Annika Duneja

Read the original at New York Post

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