According to recent WARN statistics, a large corporation is now terminating hundreds of employees in South Carolina.
FedEx intends to close four locations in total, which will impact employees not just in South Carolina but also in North Carolina.
WARN letters state that 310 employees will be impacted by the Ship Center shutdowns in September.
According to Retail Dive, the firm is continuing to reduce costs and boost efficiency by consolidating its network footprint by closing three Ship Centers in South Carolina—West Columbia, Florence, and Myrtle Beach—as well as one Ship Center in Conover, North Carolina.
In an email to Supply Chain Dive, FedEx said that it is offering relocation help or severance when appropriate, and that it will provide some impacted employees with chances at other nearby sites.
50 Myrtle Beach, South Carolina; Conover, North Carolina; 69 West Columbia, South Carolina; 134 Florence, South CarolinaThere are 57 FedEx layoffs in South and North Carolina.
Image – Mint
FedEx may expedite the delivery of items to clients by eliminating redundant facilities and routes.
However many corporate couriers are losing their employment as a result of FedEx’s efforts to right-size its network.
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For instance, 66 couriers will be impacted by the Conover shutdown in September, albeit some employees will find alternative employment.
FedEx stated in its statement, “Decisions of this nature are never made lightly, and are the result of much thought and consideration for the needs of our business.”
As with previous closures in Texas, Georgia, and Mississippi, the bulk of workers affected by the two Ship Center closures in Colorado and Ohio last year were also couriers.
FedEx Executive Vice President and CFO John Dietrich stated during a March earnings conference that the corporation had reduced its workforce by around 22,000 people in the last year.
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Unemployment benefit applications are currently at all-time highs, indicating that the scorching job market is beginning to cool down.
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According to CNN, the number of first applications for unemployment benefits increased last week to 231,000, the largest since August.
According to figures released on Thursday, 1.78 million individuals had applied for unemployment benefits—also known as continuing claims—during the previous week.
That is 17,000 more than the previous week, as reported by the Bureau of Labor Statistics.
Less than a week has passed since the US economy added just 175,000 jobs in April, below expectations and a sharp decline from previous months, according to the monthly jobs report.
As of the moment, US firms are adding 245,500 jobs per month on average, up from 251,000 jobs per month on average in 2023.
Hiring is still rather active, though. The jobless rate has remained below 4% for 27 straight months, a trend last observed in the late 1960s, despite a little increase to 3.9% last month.
While one week’s worth of data “does not a trend make,” according to Chris Rupkey, chief economist at Fwdbonds, the weekly unemployment claims data tends to be volatile.
In light of today’s weekly unemployment claims, we can no longer be certain that calm waters await the US economy.
In a letter on Thursday, he stated, “Company layoffs are picking up, hinting at caution on the part of companies as they weigh the outlook for the second half of the year.”
In an attempt to slow down the economy, the Federal Reserve has been fighting inflation by increasing its benchmark lending rate.
Fed Chair Jerome Powell stated last week that demand had “cooled from its extremely high level of a couple of years ago,” despite the labor market’s resistance to those efforts thus far, which has seen it remain hot for the past 18 months despite 11 rate rises from the central bank.
In a report published on Thursday, Ian Shepherdson of Pantheon Economics stated, “We’d need to see at least a month of elevated readings to convince us that the trend has turned.”
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