FedEx has come under criticism after an increase 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 $2.24 billion as part of its Next Generation Delivery Service-2 programme. The agreement includes a base period from April 2023 to September 2026, with options that could extend operations through 2030.
H-1B Hiring Rises After Federal Contract Award
Data cited by the Dallas Express shows that at the time the contract was awarded, FedEx had roughly two dozen approved H-1B visa workers. By 2025, that number had reportedly risen to approximately 500.
Some of the H-1B positions were advertised with salaries ranging between $100,000 and $115,000, drawing scrutiny as the company reduced its domestic workforce.
Hundreds of US Jobs Cut Across Multiple States
The increase in foreign hiring occurred as FedEx announced a series of layoffs across the United States. In November 2025, the company said it would eliminate 856 positions at a warehouse facility.
Earlier in the year, 305 jobs were cut in Fort Worth, while 131 roles were lost in Garland and Plano. Additional layoffs were reported in Memphis, as well as in Kentucky, New York, and Pennsylvania.
FedEx Responds to Workforce Criticism
A FedEx spokesperson told the Dallas Express that the company remains focused on workforce development and long-term growth.
“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 increase in H-1B hiring was linked to corporate entities joining together and was not directly related to the roles that were eliminated. They added that the positions affected by layoffs were not eligible for H-1B visas.
H-1B Visa Program Draws Political Attention
The H-1B visa 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, stating, “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. Others have 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 in technology and IT-related roles.
Company Denies Link Between Layoffs and Visa Use
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.
