Reporting by Sam Morgen, Palm Springs Desert Sun
More than 100 employees have been notified they will be laid off from FedEx facilities in Palm Springs and Victorville.
The company said in a California WARN Act notice that 62 employees would be impacted by the permanent closure of a ship center located at 111 Bird Center Dr. in Palm Springs, while another 54 would be impacted by another permanent closure of a ship center at 12212 Industrial Blvd. in Victorville.
The closures come as the company is streamlining its services throughout the country. Ship centers function as drop-off locations for packages directly operated by the company as opposed to independently owned businesses that have been incorporated into the logistics network.
A spokesperson for FedEx said the employees had been told months earlier that the two facilities would be closing and some have been offered other roles in the company.
“These decisions are never taken lightly and reflect our commitment to supporting affected employees — through job placement assistance, relocation aid, or severance, as applicable — while transforming our network and continuing to provide an outstanding experience for our customers,” said the spokesman, David Westrick.
Both Palm Springs and Victorville have numerous other FedEx facilities. Customers can find another suitable location to drop off packages at fedex.com.
Massive overhaul occurring at FedEx
FedEx is in the midst of transforming its business model to reduce redundancies. As part of a strategy called Network 2.0, the company announced in 2023 it would combine its air, ground and parcel operating units into one corporation known as Federal Express Corp.
Part of the goal of the transition is to assign only one van per neighborhood. The program is aimed at reducing costs by around $2 billion by 2027, according to FreightWaves, a price reporting agency on global freight.
Still, the announcement comes at a difficult time for Palm Springs businesses. A number of high-profile closures have occurred over the summer, including the popular Trio restaurant and Prism Theater.
Oscar’s, a restaurant known for drag brunches and tea dances, is also on the verge of closure.
While not associated with the entertainment and hospitality industry, the closures of the FedEx facilities are still a significant event. They were announced as part of a federal law requiring companies with more than 100 employees to provide written notice more than two months before a closure or layoffs occur.
In Palm Springs, the closure will go into effect Sept. 29, while in Victorville, the closure will occur on Sept. 28.
Sam Morgen covers local government for The Desert Sun. Reach him at smorgen@gannett.com.
This article originally appeared on Palm Springs Desert Sun.
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