(José Niño, Headline USA) A substantial federal contract awarded to FedEx preceded a dramatic expansion in the company’s foreign workforce, occurring simultaneously with widespread layoffs of American employees nationwide.
According to Dallas Express, the U.S. Transportation Command selected FedEx in December 2022 as one of three firms to handle package delivery for government agencies. The indefinite-delivery contract, valued at $2.24 billion according to GovCon Wire, covers the Next Generation Delivery Service-2 program through September 2030.
Following that award, FedEx’s H-1B visa hiring expanded dramatically. U.S. Citizenship and Immigration Services data reveals the company employed approximately two dozen approved H-1B workers when it secured the contract. Within three years, that number ballooned to roughly 500, with the steepest increases materializing in 2024 and 2025. Most growth concentrated in Tennessee, the company’s headquarters location, though positions span numerous states.
A separate H-1B database shows FedEx filed visa applications for positions in Texas including “Digital Marketing Advisor” and “Engineering Specialist Advisor,” with compensation typically between $100,000 and $115,000. Some applications listed start dates in Texas cities during the same periods when layoffs occurred in those regions, though approval status for all filings remains unclear.
Meanwhile, FedEx terminated hundreds of domestic positions. The company disclosed in a November 2025 Worker Adjustment notification that 856 jobs at a Coppell warehouse would be eliminated by April 2026. A spokesman attributed the closure to a customer relocating operations to a different logistics provider, according to Dallas Express reporting. Additional 2025 cuts included 305 Fort Worth positions and 131 jobs in Garland and Plano.
Beyond Texas, FedEx announced plans to eliminate 611 Memphis workers after losing an automotive manufacturing client, the Tennessee Lookout reported. Further reductions hit facilities in Kentucky, New York and Pennsylvania throughout 2025, according to Supply Chain Dive.
FedEx has not publicly connected its federal contract to either H-1B hiring patterns or domestic workforce reductions.
A company spokesperson stated, “FedEx is committed to offering employees the opportunity to grow and advance in their careers. Doing so helps our team members thrive, and FedEx prosper. Our strategy is centered around recruiting a skilled workforce that meets our unique business needs and hiring the most qualified candidates.”
Company sources told Dallas Express that corporate consolidation explains much H-1B growth, adding that eliminated positions differ from roles requiring H-1B workers, who typically need bachelor’s degrees or higher.
The visa program faces mounting criticism. Vice President JD Vance recently urged corporations to prioritize hiring Americans, Dallas Express reported. Fran Rhodes of True Texas Project advocated abolishing the program, writing it creates “a financial advantage for the companies hiring foreign workers at a lower pay scale.”
The Economic Policy Institute similarly described the program as “deeply flawed,” noting employers can “legally underpay H-1B workers” without recruiting Americans first.
However, Vivek Ramaswamy defended foreign labor in a December 2024 X post, claiming necessity because “American culture has venerated mediocrity over excellence.”
FedEx maintains it “complies with all applicable federal immigration laws.”
José Niño is the deputy editor of Headline USA. Follow him at x.com/JoseAlNino
