FedEx officials recently announced they will be laying off 84 workers at the company’s 700 S.W. Ninth St. facility in downtown Des Moines. Company officials said the layoffs are part of a multi-year strategy to implement FedEx’s Network 2.0 initiative, which is designed to simplify service and improve efficiency with a “one van, one neighborhood” model.

“As part of this strategy, FedEx is reorganizing the operations at this facility in Des Moines,” David Westrick, FedEx media relations spokesperson, stated in an email. “These decisions are never made lightly. We’re committed to supporting impacted employees through job placement assistance, relocation aid, or severance. Many will be offered other roles within the company.”

Employees knew of the layoffs several months ago and were provided a written notice, the announcement said. The layoffs take effect in September. Seven FedEx facilities that employ over 600 individuals remain in the Des Moines area.

According to FedEx, Network 2.0 is designed to improve pickup, transport and delivery of packages in the U.S. and Canada by:

• Streamlining package pickups and deliveries with “one van, one neighborhood” coverage in many areas.
• Improving package speed and service by consolidating stations, decreasing handoffs and optimizing networks.
• Enhancing package visibility by using the same technology throughout the company.
• Providing consistent, simplified interactions with team members and tools.

With the optimized network, customers may no longer need to separate packages for pickup and will experience a single delivery. Certain facilities in key districts are being consolidated, driven by data and geographic efficiencies. Common technology systems, handheld software and scanning processes are rolling out network-wide, to improve package visibility and overall service.

As part of this consolidation, FedEx is closing select facilities and reorganizing staffing in others to streamline operations. FedEx provides communication, job resources, reassignment opportunities and compensation packages to those laid off employees.

To date, FedEx has implemented the new system in more than 300 stations in the U.S. and Canada. Roughly 2.5 million average daily packages are flowing through Network 2.0-optimized stations.