A FedEx entity plans to permanently close one of its Dallas-area facilities in a move cutting more than 850 jobs after a customer decided to transition its business to a new third-party logistics provider.
Memphis, Tennessee-based FedEx is closing the nearly 280,000-square-foot hub at 840 W. Sandy Lake Road in Coppell, Texas, a city about 20 miles northwest of downtown Dallas, after an undisclosed client changed logistics providers. Third-party logistics providers have been leasing more space in the Dallas-Fort Worth region, CoStar's market analytics team said in their latest report on the industrial market.
"FedEx Supply Chain will no longer be providing third-party logistics for the customer" in Coppell, a FedEx spokesperson told CoStar News in an emailed statement.
The Coppell distribution hub is expected to be permanently closed by April 29, according to a Worker Adjustment and Retraining Notification letter FedEx sent to the Texas Workforce Commission last week. In all, FedEx plans to cut 856 jobs tied to the facility.
The employee separations are scheduled to begin Jan. 16, with three additional phases in February, March and April to occur before the hub closes. FedEx said some employees are "eligible for other roles within the company."
FedEx has been closing facilities and shedding workers as part of what it calls its Network 2.0 plan, unveiled a few years ago to help streamline operations, as CoStar News has previously reported. But the Coppell closure is not tied to Network 2.0, the FedEx spokesperson confirmed.
Chicago-based LaSalle Investment Management owns the Coppell distribution hub, according to CoStar data. It is unclear what FedEx plans to do with the space, which FedEx has leased till June 2028. FedEx did not immediately respond to CoStar News' request for additional details on its real estate plans.