FedEx Faces Criticism Over Layoffs in the US and Increased Hiring of H-1B Visa Workers

FedEx has come under criticism for laying off a significant number of American workers while increasing the hiring of foreign professionals under the H-1B visa programme. Reports indicate that the global logistics company expanded international hiring after securing a major federal delivery contract in 2022 valued at billions of dollars.
Between 2022 and 2025, FedEx reportedly hired close to 500 international employees on H-1B visas. The hiring peaked during 2024–25, with many roles based in Texas. Some technology positions are reported to have offered salaries ranging between $100,000 and $115,000 annually.
The increase in hiring followed a large federal contract awarded by the US Transportation Command, which selected FedEx as one of three companies responsible for nationwide package deliveries for government agencies. The contract, estimated to be worth at least $2 billion, began its first phase in April 2023. It is expected to run until late 2026, with the possibility of a four-year extension through 2030.
The hiring strategy has drawn backlash, particularly because FedEx had earlier announced job cuts across the US that predominantly affected American workers. Critics argue that the company should prioritise domestic talent before recruiting overseas professionals.
FedEx has stated that its hiring decisions are driven by business needs and that the company is committed to building a diverse workforce with varied skills and nationalities.
The controversy has also taken a personal turn, with some critics targeting FedEx CEO Rajesh “Raj” Subramaniam, who took over from founder Fred Smith in 2022. Subramaniam, who is of Indian origin, has faced allegations on social media of promoting nepotism, claims the company has not substantiated.
Several social-media users have called on FedEx to hire foreign workers only when suitable American candidates are unavailable or cannot be identified within a reasonable time frame, such as six months.
The debate reflects broader tensions in the US around immigration, employment, and the use of foreign talent in sectors facing both skill shortages and workforce reductions.
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