FedEx Supply Chain has informed the Tennessee Department of Labor that it plans to lay off 611 employees at two distribution centers in Memphis by October 11.

As one of the largest employers in Tennessee, FedEx Supply Chain’s decision to let go of these workers will have a significant impact on the Shelby County area. The notification was made to the state labor department this past Wednesday.

The layoffs will specifically affect the distribution centers located at 4155 Quest Way and 5800 Challenge Drive, both of which support Cummins, a major automotive parts manufacturer. Since 2019, Cummins has partnered with FedEx Supply Chain to handle distribution for various components and remanufacturing needs.

A company spokesperson indicated that Cummins is shifting some of its Memphis operations to a different logistics provider in Indianapolis as part of an effort to enhance efficiency and better serve its customers.

Despite these layoffs, FedEx intends to keep a portion of its business in Memphis, with plans for this transition to wrap up by October.

Earlier this month, employees were notified of the upcoming layoffs. Many of those affected might qualify for other positions within FedEx.

Across Tennessee, FedEx Corporation, which encompasses multiple FedEx companies, employs over 39,000 individuals. FedEx Supply Chain itself has more than 12,500 staff members and operates over 130 warehouses and distribution centers throughout the U.S. and Canada.

The company emphasized its commitment to assist laid-off employees, offering services like job placement assistance and relocation resources.

It’s worth noting that a FedEx representative clarified that these layoffs are unrelated to the company’s ongoing “Network 2.0” strategy, which aims to optimize their package delivery framework.

This marks the second round of layoffs for FedEx in 2023, following the termination of 217 employees from a central Tennessee facility in March.