More good news. Phull sappot to Fedex bosses, Saar
FedEx has faced criticism after a rise in its hiring of foreign workers under the H-1B visa programme coincided with job cuts affecting hundreds of US employees, following the award of a multibillion-dollar federal delivery contract.
In December 2022, the US Transportation Command awarded the American logistics company a contract valued at $2.24bn as part of its Next Generation Delivery Service-2 programme. The agreement covers a base period from April 2023 to September 2026, with options that could extend the work until 2030.
Data cited by the
Dallas Express shows that at the time the contract was awarded, FedEx had around two dozen approved H-1B visa workers. By 2025, that figure had increased to approximately 500. Some of the roles were advertised with salaries ranging between $100,000 and $115,000.
The increase in foreign hiring came as the company announced a series of job cuts across the United States. In November 2025, FedEx said it would eliminate 856 positions at a warehouse facility. Earlier in the year, 305 jobs were cut in Fort Worth, with a further 131 roles lost in Garland and Plano. Layoffs were also reported in Memphis, as well as in Kentucky, New York and Pennsylvania.
A FedEx spokesperson told the
Dallas Express that the company remained focused on workforce development. "FedEx is committed to offering employees the opportunity to grow and advance in their careers. Doing so helps our team members thrive, and FedEx prosper," the spokesperson said. "Our strategy is centred around recruiting a skilled workforce that meets our unique business needs and hiring the most qualified candidates."
Sources familiar with the company said much of the growth in H-1B hiring was linked to corporate entities joining together, and was not directly related to the positions that were eliminated. They added that the roles affected by the layoffs were not eligible for H-1B visas.
The H-1B programme, which is generally limited to jobs requiring a bachelor’s degree or higher, has become a renewed focus of political debate in the United States.
US Vice President JD Vance recently urged companies to prioritise domestic hiring, saying: "You might try hiring Americans."
Some conservative commentators and Republican supporters have called for the programme to be scrapped entirely, arguing that it displaces American workers. Right-wing media outlets have also highlighted claims that US employees were required to train foreign replacements before being laid off.
By contrast, business leaders including former Department of Government Efficiency head Vivek Ramaswamy and Tesla chief executive Elon Musk have argued that access to foreign labour is essential, particularly for the technology and IT sectors.
FedEx said it complies with all federal laws and does not discriminate in its hiring practices. "Across our business, we employ a wide range of roles, requiring a variety of skillsets and are committed to complying with all applicable federal immigration laws," the spokesperson said.
The company has not drawn a direct link between the federal contract, its use of H-1B visas or the domestic job reductions.
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