FedEx Supply Chain, the contract logistics arm of FedEx Corp., will stop serving a Procter & Gamble (NYSE: PG) distribution center in Lima, Ohio, and lay off 63 workers by the end of October after the consumer goods company decided to switch to another logistics provider.
FedEx (NYSE: FDX) disclosed the changeover at the facility, located at 635 N. Cool Rd., in a late August notice to the Ohio Department of Job and Family Services.
The notice said FedEx expects many of its employees who currently work at the facility will be offered jobs by the new logistics vendor. Affected employees will be paid wages and benefits through Oct. 31, as well any applicable retirement and insurance benefits.
This is the second instance in recent weeks in which FedEx Supply Chain has lost business and announced job cuts. Last month, the company said it will release more than 600 workers at a Cummins Inc. engine parts distribution campus in Memphis, Tennessee, because Cummins is relocating some of the distribution work to Indianapolis.
The Ohio layoffs are not connected to FedEx’s Network 2.0 restructuring of its FedEx Express and FedEx Ground parcel delivery divisions, which involves combining the footprint of the dual networks and reducing jobs to operate more efficiently.
P&G, headquartered in Cincinnati, didn’t respond to a query for more details by publication time.
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