- FedEx Supply Chain will permanently close a 280K SF distribution center in Coppell, Texas, by April 29, 2025, impacting 856 employees.
- The closure follows a major client’s decision to switch to a different third-party logistics provider, not as part of FedEx’s broader Network 2.0 restructuring.
- Employee layoffs will begin in January and roll out in phases through April, with some workers eligible for reassignment within FedEx.
- The facility is owned by LaSalle Investment Management, and FedEx holds the lease through 2028, though its future plans for the space remain unclear.
A Strategic Shift Outside Network 2.0
FedEx is shutting down its Coppell, Texas distribution hub after losing a key third-party logistics client, reports CoStar. The closure marks another contraction in the company’s footprint. However, it is not tied to FedEx’s broader “Network 2.0” restructuring initiative.
Located at 840 W. Sandy Lake Road, the nearly 280K SF facility is set to close permanently by April 29, 2025. The move affects 856 employees, with layoffs scheduled to begin January 16 and continue in three phases through the facility’s closure.
Why It’s Closing
A FedEx spokesperson confirmed the decision stems from the loss of a client, not internal restructuring. “FedEx Supply Chain will no longer be providing third-party logistics for the customer,” the company said in a statement.
The shift reflects a broader trend in the Dallas-Fort Worth region, where more third-party logistics (3PL) providers are expanding their footprint, according to recent industrial market data from CoStar.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
What Happens Next
The property is owned by Chicago-based LaSalle Investment Management, but FedEx still holds the lease until June 2028. The company has not disclosed plans for subleasing or repurposing the space.
FedEx noted that some of the impacted workers may be eligible for other roles within the organization, though no specific reassignment plans have been announced.
Context: FedEx’s Broader Operational Changes
FedEx continues to streamline operations under its “Network 2.0” initiative, which is designed to reduce redundancy across its Ground and Express units. However, the Coppell facility closure is separate from that effort.
Still, the announcement comes amid broader industrial and labor recalibrations across the logistics industry. This is especially true in markets like Dallas-Fort Worth, where competition among third-party logistics (3PL) providers is intensifying.
Looking Ahead
As FedEx winds down operations in Coppell, industry watchers will look for clues about how the company manages its unused real estate. They will also be watching to see whether other logistics firms step in to fill the void. The closure also raises questions about the stability of third-party logistics contracts and their impact on regional employment.
