By October 11, 2025, 611 workers will be laid off by one of Tennessee’s biggest employers. FedEx Supply Chain announced the layoffs earlier this month following big news from engine manufacturer Cummins.
Cummins is transitioning a portion of its Memphis-based aftermarket parts distribution business to Indianapolis, and using a new logistics partner. A Cummins spokesperson said that the change is, “Driven by our need to improve efficiency and better support our customers.”
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With the Cummins transition underway, the layoffs will affect two FedEx distribution centers across Memphis. These centers had been working with Cummins since 2019 to distribute rebuild kits, remanufactured engines and component parts.
Although FedEx confirmed the layoffs are not related to the company’s ‘Network 2.0’ plan for streamlining its package network, this is the company’s second layoff this year. The state’s labor department filed notice that 217 employees were previously laid off in Middle Tennessee in March.
However, FedEx is aiming to retain a portion of the Cummins business in the Memphis area, allowing affected employees eligibility for other company roles. FedEx said, “We are committed to supporting affected employees through job placement assistance, relocation aid, or severance, as applicable, including at other nearby FedEx facilities in the area.”
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