FedEx to close 475 stations in Network 2.0 Overhaul

FedEx is really leaning into the old adage, “less is more.” By the end of Fiscal Year 2027, the carrier’s multi-year initiative to merge Ground and Express operations will be complete. The implementation of Network 2.0 has already led to more than 200 station closures and approximately 360 optimized stations across the US and Canada, and they’re just getting started.

Today, we’re talking about the latest Network 2.0 news, upcoming station closures, and how you can maximize savings as FedEx cuts costs.

What’s Happened So Far With Network 2.0?

In last week’s FedEx Investor Day 2026 call, Scott Ray, COO-elect for US and Canada Surface, brought everyone up to speed on where the Network 2.0 rollout stands now.

The carrier currently routes 25% of its average daily volume through its approximately 360 Network 2.0 optimized stations in the US and Canada. That’s led to a 10% decrease in pickup & delivery related costs in completed markets.

What Can We Expect Between Now and the Completion of Network 2.0?

By the end of 2026, the carrier is projected to save $1 billion annually after optimizing 65% of its stations in the US and Canada.

One year later, it will save $2 billion annually. Ray says that by the end of 2027, FedEx intends to optimize more than 900 stations and close 475 of them. That’s over 30% of its stations set to close. After starting consolidations in smaller markets, FedEx will shift its focus to reducing redundant infrastructures in large metro areas.

The initiative touts “one truck, one neighborhood,” which aims to enhance last-mile efficiencies and real-time network planning, including:

• Improving service area planning

• Increasing the efficiency of vehicle load and route planning

• Improving visibility

• Proactively rerouting

• Offering better forecasting

FedEx will leverage these enhancements to improve asset utilization, accelerate recovery after disruptions, and reduce contingency costs.

Who Wins with Network 2.0 Closures?

FedEx CEO and President, Raj Subramaniam, described the benefits of the carrier’s current initiatives, saying, “What sets this moment apart is the role of digital intelligence. This is a true force multiplier that will support durable value with profitable growth, higher margins, stronger cash generation, and increased returns for our stockholders.” That’s a lot of talk about profit.

By increasing automation, digital, and AI capabilities, FedEx will be more productive with less human labor. All those man-hours saved become profit for the carrier or returns for stockholders.

And the shippers? They will likely receive the same (or admittedly better) service that costs the carrier less in terms of labor and infrastructure— all while paying FedEx’s ever-rising rates.

It’s time to renegotiate your contract.

You can renegotiate your FedEx contract at any time, for any reason. The team at ShipRx will assess your current contract and help you secure the best rates possible.

Contact ShipRx and get started on your FedEx contract negotiation. FedEx is saving money thanks to Network 2.0. Are you?