FedEx is facing scrutiny following a significant increase in H-1B visa hiring at the same time the company has been laying off American workers. The controversy comes after FedEx was awarded a $2.24 billion federal delivery contract in late 2022 for the Next Generation Delivery Service-2 program. The contract's base period extends from April 2023 to September 2026, with options potentially prolonging the work until 2030.
Data indicates that FedEx had roughly two dozen approved H-1B visa workers when the contract was awarded. By 2025, this number had risen to approximately 500. Some of these positions have listed salaries ranging from $100,000 to $115,000. The increase in foreign hiring has coincided with layoffs of American employees across several states. In November 2025, FedEx announced plans to eliminate 856 jobs at a warehouse in Coppell, Texas, with a permanent shutdown scheduled for completion by April 29, 2026. Earlier in 2025, the company cut 305 positions in Fort Worth, followed by 131 in Garland and Plano. Layoffs have also impacted Memphis, Kentucky, New York, and Pennsylvania.
The H-1B visa program, typically reserved for jobs requiring at least a bachelor's degree, has become a major political issue. Critics argue that the program disadvantages American workers, while supporters maintain that it is necessary for filling specialized roles and contributing to the American economy. Vice President JD Vance has urged companies to "try hiring Americans".
FedEx has responded to the criticism by stating that its hiring practices are based on business needs and skills. A company spokesperson stated that FedEx is focused on helping employees grow and building a workforce according to its operations. Sources familiar with the company have said that the increase in H-1B workers is due to corporate entities joining hands and does not have any direct relation to the eliminated positions, which are not roles eligible for H-1B visas. They emphasized that most laid-off roles weren't eligible for visa sponsorship and were cut due to lost customer contracts.
Rajesh "Raj" Subramaniam, the Indian-origin CEO of FedEx, is facing increased scrutiny amidst the controversy. Some view the layoffs and increased H-1B hiring under his leadership as a move to replace American workers with lower-cost foreign labor. However, FedEx maintains that it complies with all laws and employs a wide variety of workers. The company asserts that its strategy is centered around recruiting a skilled workforce that meets its unique business needs and hiring the most qualified candidates.
