FedEx Cutting 130 Texas Jobs

FedEx Corp. is eliminating 130 jobs in the Austin, TX area as it reorganizes a unit and ends a contract to manage warehouses for Dell Computer Corp. The move at the company's FedEx Supply Chain Services Inc. follows about 120 cuts last month at the unit in California, Colorado, North Carolina and Ohio. The Texas jobs will be cut from May 31 to July 31, according to documents filed at the Texas Workforce

Tim Parry

May 23, 2001

FedEx Corp. is eliminating 130 jobs in the Austin, TX area as it reorganizes a unit and ends a contract to manage warehouses for Dell Computer Corp.

The move at the company's FedEx Supply Chain Services Inc. follows about 120 cuts last month at the unit in California, Colorado, North Carolina and Ohio. The Texas jobs will be cut from May 31 to July 31, according to documents filed at the Texas Workforce Commission.

“We're following a new business model that does not emphasize warehouses and assets, but information technology and alliances,” FedEx spokesman Jess Bunn said. “As a result, these positions are affected.”

Many of the 120 employees affected in the Austin area are being hired by EGL Inc.'s Eagle Global Logistics unit, which is taking over the Dell contract, FedEx said.