FedEx received a massive federal delivery contract worth more than $2 billion in late 2022. Not long after that, the company’s hiring pattern began to change in a noticeable way. According to the public records cited by The Dallas Express, FedEx dramatically increased its use of foreign workers through the H-1B visa programme, while cutting hundreds of jobs held by American workers in different parts of the country.
FedEx responded to the report by saying it hires based on business needs and skills. A company spokesperson told The Dallas Express that FedEx is focused on helping employees grow and building a workforce according to its operations.
FedEx under fire for hiring H-1B workers
In the current Trump administration, when companies are hesitating to hire H-1B workers due to the hefty $100K fee imposed, FedEx CEO Rajesh “Raj” Subramaniam, who is of Indian origin, is facing backlash for firing Americans to hire foreign workers. Data from the US Citizenship and Immigration Services H-1B database suggests that in 2022, when the contract was announced, FedEx had roughly two dozen approved H-1B workers. Over the next three years, that number grew to around 500, with the biggest jump in foreign hiring taking place in 2024 and 2025.
Responding to the report, a spokesperson of the company told The Dallas Express, “FedEx is committed to offering employees the opportunity to grow and advance in their careers. Doing so helps our team members thrive, and FedEx prosper. Our strategy is centred around recruiting a skilled workforce that meets our unique business needs and hiring the most qualified candidates.”
According to The Dallas Express, in December 2022, the US Transportation Command picked FedEx and two other companies to deliver packages for government agencies. The deal was listed under the Next Generation Delivery Service-2 programme and has a total face value of $2.24 billion, according to GovCon Wire.
The base period of the contract started on April 1, 2023, and will end on September 30, 2026. Some options could extend the work until September 2030. Separate data from a private H-1B salary database shows that some of FedEx’s visa applications were for business and technical roles in Texas. The listed pay for these roles generally fell between $100,000 and $115,000.
The same database shows that some applications had planned start dates in cities like Plano at the same time FedEx was reporting layoffs in those areas. Not all visa filings lead to approved hires, so it is unclear how many of those received jobs.
Layoffs across several US states
According to the same report, at the same time as foreign hiring increased, FedEx carried out mass layoffs of US workers. In November 2025, the company announced plans to cut 856 jobs at one of its warehouses. Earlier in the year, 305 positions were eliminated in Fort Worth, followed by another 131 job cuts in Garland and Plano.
The H-1B visa program has become a major political issue in recent months. US Vice President JD Vance publicly urged companies to consider hiring American workers first, saying, “You might try hiring Americans.” Many MAGA commentators and Republican supporters have called for a complete ban on the H-1B system.
At the same time, several prominent business leaders have defended the use of foreign workers. Former DOGE head Vivek Ramaswamy and Tesla CEO Elon Musk have both said that global talent is necessary for the US economy, especially in technology and IT sectors.