FedEx Faces Scrutiny Over H-1B Hiring, Layoffs
FedEx has come under scrutiny in the United States after reports highlighted a rise in the company’s use of H-1B visa hiring while it also carried out job cuts affecting American workers in multiple locations. The controversy has gained attention because FedEx is an awardee under the federal government’s Next Generation Delivery Service (NGDS) programme, a logistics contract vehicle overseen for government-wide small-package delivery needs.
Critics and labour-focused observers have questioned whether companies benefiting from large federal delivery arrangements should be reducing domestic headcount while seeking additional specialised labour through the H-1B route. The debate has also revived broader political arguments in the US about the purpose of the H-1B programme, which is intended for specialty occupations, and whether it is being used alongside cost-cutting workforce strategies.
What FedEx Has Said
FedEx has defended its staffing approach by stating that its hiring decisions are based on operational needs and workforce planning, and that the roles filled through H-1B filings are typically specialised positions. Industry watchers note that visa filings do not always translate into final approvals or hires, and that company-wide restructuring can occur in parallel with targeted recruitment for specific functions.
Why the Issue Is Being Raised Now
The current scrutiny is tied to the optics of workforce reductions occurring during a period when FedEx remains connected to major federal delivery work through NGDS. The federal contract structure itself is not a single-job guarantee and can involve multiple logistics providers, but the public focus has remained on whether federal-linked companies should be held to higher expectations on domestic employment practices.
