FedEx Supply Chain will lay off 611 employees in Shelby County by Oct. 11, the company reported the state labor department on Wednesday.
The job cuts will impact two distribution centers in Memphis, 4155 Quest Way and 5800 Challenge Drive, of which are distribution points for engine parts manufacturer Cummins. Cummins had contracted with FedEx Supply Chain in 2019 to have the latter deliver parts, kits and remanufactured engines for these facilities.
Cummins is moving its market parts distribution from Memphis to an existing facility of a new logistics partner in Indianapolis, company spokesperson said Wednesday, adding that the change "is something that we need to drive efficiency and better support our customers."
According to the company's statement, Fed will retain "some business at this location," where the aforementioned distribution centers are located, and the transition is expected to be completed by October.
FedEx Supply Chain informed of the layoffs earlier this month. According to its statement, many of the affected employees will be placed into other roles within the company.
FedEx Corporation encompasses several Fed subsidiaries and employs more than 39,000 employees in Tennessee, according to the company's report. FedEx Supply Chain has more than 12,00 employees at over 130 warehouses and distribution centers in the U.S. and Canada.
FedEx confirmed Wednesday the layoffs are unrelated to the's ongoing "Network 2.0" plan, which aims to streamline FedEx's package network.
This is the second round of layoffs reported by the this year. According to the notifications submitted to the state labor department, 217 employees were laid off at a factory in Middle Tennessee in March

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