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FedEx received a significant federal delivery contract worth more than $2 billion in late 2022. The company's hiring procedures started to drastically change thereafter. According to The Dallas Express, official documents show that FedEx significantly raised the number of foreign workers it hired under the H-1B visa program while concurrently decreasing the number of American positions held in different parts of the US.
In response to the report, FedEx stated that its hiring decisions are based on business requirements and the necessary skills. A spokesperson for the company told The Dallas Express that FedEx is committed to fostering employee development and constructing a workforce aligned with its operational needs.
“Across our business, we employ a wide range of roles, requiring a variety of skillsets and are committed to complying with all applicable federal immigration laws.”
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Indian-origin FedEx CEO Rajesh “Raj” Subramaniam is now facing flak on social media for firing American employees in order to bring in foreign workers. The move comes at a time when firms are hesitant to hire H-1B workers due to the hefty $100K charge under current Trump administration.
Slamming Subramaniam over H-1B shift, one netizen wrote: “But we were told its racist to hire our own people. But everyone else can do it. This is what tyranny looks like at the government level.”
“FedEx CEO. Indian nepotism never fails. They will always replace you,” another said.
When the contract was made public in 2022, FedEx recruited about 20 approved H-1B employees, as per statistics from the US Citizenship and Immigration Services H-1B database. The number rose to roughly 500 over the next three years, with the biggest surge in international hiring taking place in 2024 and 2025.
Reacting to the report about H-1B hiring, one X user expressed shock, writing: “unbelievable”.
“They need to change the rules so never can a H-1B worker be used unless it takes more than 6 months to find a US citizen for the job. If an H-1B is used, that position should stay open for Americans. As soon as one is found, that should be the end of the H-1B,” another said.
“Need to suspend H1B program until each and everyone can be audited for validity,” a third person commented.
“@FedEx That explains why they have gone from the best delivery service to the worst. Late packages, packages tossed on driveways rather than following requests where to deliver & subject to theft. They are now awful,” one more chimed in.
According to The Dallas Express, the the US Transportation Command chose FedEx and two other companies in December 2022 to manage package deliveries for government organizations. This arrangement has a total value of $2.24 billion and is part of the Next Generation Delivery Service-2 initiative, as per GovCon Wire.
The contract's first phase began on April 1, 2023, and it is set to end on September 30, 2026. There are options that could prolong the project until September 2030. Some of FedEx's visa applications were for commercial and technical jobs in Texas, according to additional data from a private H-1B wage database. The salaries for these jobs ranged between $100,000 and $115,000.
Additionally, the same database shows that several applicants had planned start dates in places like Plano, which coincided with FedEx's announcement of layoffs in such areas. It is crucial to note that not every visa application leads to a successful hiring, making it difficult to determine the precise number of people who were hired.
Source: HindustanTimes
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