FedEx is under scrutiny after reports revealed a sharp increase in H-1B hiring while hundreds of American employees were laid off. The company, which won a $2.24 billion federal delivery contract in late 2022, has reportedly expanded its use of H-1B visa holders from roughly two dozen in 2022 to around 500 by 2025.
The surge in foreign hires coincided with mass layoffs across several U.S. states. In November 2025, FedEx announced 856 job cuts at one warehouse, following earlier layoffs of 305 employees in Fort Worth and 131 in Garland and Plano. According to reports, some of the H-1B positions were located in the same places where the layoffs happened, and they were offering the same amount of money, ranging from $100,000 to $115,000, for both tech and biz posts.
FedEx’s CEO, Rajesh “Raj” Subramaniam, whose ancestry goes back to India, has been criticized for selecting H-1B employees over American ones. The company says that it hires based on the business need and skill availability, and it emphasizes that such hiring is part of its growth strategy to enhance operational efficiency.
A federal contract was granted under the Next Generation Delivery Service-2 program which started on the 1st of April, 2023, and runs until the 30th of September, 2026, with an option to prolong until the year 2030. The H-1B hiring has been politically controversial, but some business figures like Vivek Ramaswamy and Elon Musk have spoken out in favor of it, saying that the U.S. economy needs global talent.
Key Highlights:
- $2.24B federal delivery contract awarded in 2022.
- H-1B workers increased from ~24 in 2022 to ~500 in 2025.
- Mass layoffs in U.S. warehouses: Fort Worth, Garland, Plano.
- Salaries for visa hires: $100K–$115K.
- Political debate over H-1B program intensifies.
- FedEx claims hiring based on skills, operational needs.
