FedEx to Close Over 475 Stations Amid Network 2.0 Overhaul

Delivery giant consolidating operations, targeting large metro areas like San Francisco

Published on Feb. 13, 2026

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FedEx plans to close over 475 stations, or about 30% of its facility footprint, by the end of 2027 as part of its Network 2.0 overhaul. The initiative aims to consolidate the company's historically separate Ground and Express operations, with a focus on optimizing large metro areas like San Francisco. FedEx expects to see $2 billion in cost savings by the end of 2027 through the network changes.

Why it matters

FedEx's Network 2.0 overhaul is a major strategic shift for the delivery giant, as it works to streamline operations and reduce costs. The closure of over 475 stations, primarily in large metro areas, signals a significant transformation in how FedEx serves customers across the United States and Canada.

The details

FedEx's Network 2.0 plan has already led to the closure of more than 200 stations, and the company now expects to shutter over 475 stations by the end of 2027. The initial integration efforts have focused on smaller markets, but FedEx is now turning its attention to optimizing large metro areas like San Francisco. About 25% of FedEx's eligible average daily volume in the U.S. and Canada is currently flowing through more than 360 facilities "optimized" for Network 2.0, and the company expects that figure to rise to 65% by the 2026 peak season.

  • FedEx has already closed more than 200 stations as part of its Network 2.0 overhaul.
  • FedEx expects to close over 475 stations, or about 30% of its facility footprint, by the end of 2027.
  • By the 2026 peak season, FedEx expects 65% of its eligible average daily volume in the U.S. and Canada will be flowing through facilities optimized for Network 2.0.

The players

FedEx

An American multinational courier delivery services company and a delivery giant.

Scott Ray

The COO-elect for U.S. and Canada surface operations at FedEx.

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What they’re saying

“The concept is pretty straightforward: Our customers don't need both an Express and a Ground truck in the same neighborhood on the same day, and they don't need to separate their Express and Ground packages for two separate pickups.”

— Scott Ray, COO-elect for U.S. and Canada surface operations (supplychaindive.com)

“Predictive analytics flag potential issues, and our tools suggest reroutes before delays become customer problems. For example, when severe weather hits, or there's an unplanned disruption, we can increasingly rebalance volume across routes and assets, rather than reacting after the fact.”

— Scott Ray, COO-elect for U.S. and Canada surface operations (supplychaindive.com)

What’s next

FedEx expects to see $2 billion in savings by the end of 2027 as its Network 2.0 overhaul efforts gain steam.

The takeaway

FedEx's Network 2.0 consolidation plan represents a major strategic shift for the delivery company, as it works to streamline operations and reduce costs by closing over 475 stations, primarily in large metro areas like San Francisco. This transformation aims to optimize the company's historically separate Ground and Express operations, with a focus on improving efficiency and service levels for customers.