FedEx will end a service that provides same-day delivery in large metro areas, the latest cut to the shipping giant’s network as it grapples with cooling demand.
FedEx Office will retire its SameDay City Service “as we prioritize several other opportunities for growth,” a spokesperson confirmed in an email to Supply Chain Dive. Operations will continue through March 31, and all positions supporting the service will be eliminated.
SameDay City was billed as “the fastest local shipping option” for customers in large metro areas, offering door-to-door delivery to residences and businesses within hours. In 2017, the company expanded the service to encompass 1,800 cities in 30 commercial markets.
The service was largely targeted for businesses in healthcare, automotive or other sectors that required quick delivery of critical supplies. Pickup and delivery could occur in as little as two hours, and businesses could establish custom, same-day service for regular pickup and deliveries at multiple locations.
Workers impacted by the decision to shutter SameDay City will be offered severance packages, though they will also be encouraged to apply to other positions within FedEx. Same day delivery will still be available through FedEx SameDay US and FedEx SameDay Freight.
“FedEx Office remains committed to giving small and medium business owners, large commercial customers, and consumers convenient access to expert printing and packing, as well as shipping and returns provided by FedEx Ground and FedEx Express,” the spokesperson said in the email.
FedEx is making broad cuts throughout operations as it faces declining volumes in an uncertain economic environment. The company announced Wednesday it would slash 10% of its officer and director team as it looks to become “a more efficient, agile organization.”
The delivery giant has also made service reductions elsewhere throughout its network — FedEx Ground will scale back Sunday home delivery coverage, for example, as it adjusts to weakened demand.
Since the start of the company’s fiscal year in June 2022, FedEx’s U.S. workforce has been reduced by more than 12,000 positions through a mixture of attrition and headcount reductions.
“We will continue responsible headcount management throughout our transformation,” the spokesperson said.