FedEx announced it will permanently close its logistics facility in Coppell, Texas, with the layoff process beginning in January. The closure will impact 856 employees, with the complete closure expected to take place in April 2026. (This isn’t the first time mass layoffs have hit Texas.)
The closure is happening because one of FedEx’s major third-party customers decided to take its business to a new provider, according to a filing with the Texas Workforce Commission. FedEx stated the move to discontinue operations at the Coppell campus — located on Sandy Lake Road near Highway 121 — was “… necessitated solely by our customer’s decision to transition its business to a new location that will be managed by a new third-party logistics provider”.
Timeline
Layoffs will occur in phases beginning January 2026, with the first round impacting about 60 workers. The company expects the facility to be fully shut down by April 29, 2026.
“We are committed to supporting affected employees through job placement assistance, relocation aid, or severance, as applicable,” FedEx Communications said in a statement, noting some workers may be eligible for roles elsewhere within the company, including at nearby FedEx facilities.
Impact on Employees & Community
The closure marks one of the largest recent layoffs in the Dallas-Fort Worth region, placing significant pressure on workers in logistics roles ranging from warehouse associates to supervisory staff. FedEx says it will offer job placement assistance, relocation aid, or severance, depending on the employees’ situations.
However, not all employees are guaranteed new positions within the company. While internal transfers may be possible for some, many workers will face job searches in an already competitive labor market.
The closure of the Coppell facility comes after previous FedEx closures in Texas, including 305 layoffs at a Fort Worth facility announced in May and 131 layoffs at sites in Garland and Plano, which were announced in June.
The bigger picture
The Coppell closure reflects broader shifts in the logistics sector, where contract changes and network restructuring increasingly influence facility operations. While third-party logistics centers like the one in Coppell have flourished in recent years, they remain vulnerable when major clients change providers.
As FedEx and other logistics firms continue to adapt to evolving market demands, workers and local economies are facing the brunt of strategic operational changes — underscoring the challenges of a sector in transition.
Things are looking good for FedEx
In a time when online shopping is the preferred method for millions of customers, the outlook for freight delivery companies like FedEx is looking good. According to financial reports, FedEx is performing better than anticipated for the first quarter of the 2026 fiscal year.
Recent revenue has exceeded expectations, and the company is reducing costs through initiatives like FedEx’s “Network 2.0”, a multi-year, company-wide overhaul of FedEx’s U.S. and Canadian logistics networks designed to streamline how packages are picked up, transported, and delivered.
That means that FedEx as a whole is performing well – it just lost a third-party customer, which is why the Coppell facility is closing.
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