FedEx Faces Backlash Over H-1B Hiring Amid U.S. Job Cuts

American logistics giant FedEx is under scrutiny after a substantial federal delivery contract coincided with a dramatic increase in the hiring of foreign workers, while simultaneously laying off hundreds of domestic employees across various states.

$2.24 Billion Federal Contract Awarded

In December 2022, the U.S. Transportation Command awarded FedEx a significant contract worth $2.24 billion for the Next Generation Delivery Service-2 program. The contract’s base period spans from April 2023 to September 2026, with options for extension through 2030.

Rise in H-1B Visa Workers

Data from the Dallas Express highlights a concerning trend. At the time of the contract award, FedEx had approximately two dozen approved H-1B visa workers. By 2025, this number escalated to around 500, with some positions offering salaries between $100,000 and $115,000.

Layoffs of U.S. Employees

Despite the influx of H-1B workers, FedEx has been cutting jobs domestically. In November 2025, the company announced plans to lay off 856 positions at one of its warehouses. Earlier that year, layoffs included 305 jobs cut in Fort Worth and 131 in Garland and Plano, with additional layoffs reported in Memphis, Kentucky, New York, and Pennsylvania.

FedEx’s Commitment to Workforce Development

A company spokesperson emphasized FedEx’s commitment to employee growth and advancement, stating, “Our strategy is centered around recruiting a skilled workforce that meets our unique business needs.” However, sources within the company suggest that the increase in H-1B hiring is more correlated with partnerships among corporate entities rather than the jobs being eliminated, which do not qualify for H-1B visas.

Political Reactions and Controversy Surrounding H-1B Visas

H-1B visas, typically reserved for specialized jobs requiring a bachelor’s degree or higher, have become a contentious political issue. U.S. Vice President JD Vance has urged companies to “Try Hiring Americans,” while many commentators within the GOP advocate for a total ban on the H-1B program. Critics argue that it undermines job opportunities for native Americans by offering positions to foreign workers willing to accept lower wages.

The Argument for Foreign Talent

Despite the controversy, business leaders like ex-DOGE head Vivek Ramaswamy and Tesla CEO Elon Musk argue that foreign labor is crucial for maintaining America’s technological and IT sectors.

Compliance with Immigration Laws

FedEx maintains that it adheres to all legal requirements and employs a diverse workforce. A company spokesperson reiterated, “We are committed to complying with all applicable federal immigration laws.” Notably, the company has yet to link its federal contract directly to its H-1B hiring practices or domestic layoffs.

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