FedEx closes Calverton facility as part of nationwide network overhaul

The FedEx facility on Edwards Avenue in Calverton has permanently closed as part of the company’s ongoing consolidation of its shipping networks.

The closure was part of the company’s “network transformation strategy” known as Network 2.0, FedEx spokesperson David Westrick said in an emailed statement Friday evening.

“Team members at the facility were notified several months in advance,” Westrick wrote.

“For customers who have historically used this location for package drop off, the site at 750 Middle Country Rd. in Middle Island, N.Y. will remain open to provide these services,” he said in the email.

FedEx was operating in Calverton as far back as 1984. Its current location on Edwards Avenue, a 59,660-square-foot facility on 10.5 acres, was built in 2001 with assistance from the Riverhead Industrial Development Agency. The property is owned by NL-Edwards NY LLC, which acquired the property in 2022 for approximately $7.69 million, according to the county clerk’s land title records.

“These decisions are never taken lightly and reflect our commitment to supporting affected employees – through job placement assistance, relocation aid, or severance, as applicable – while transforming our network and continuing to provide an outstanding experience for our customers,” Westrick wrote.

Network 2.0 is FedEx’s multi-year network overhaul, announced in 2022, to improve the pickup, transport and delivery of packages in the U.S. and Canada, according to an information sheet provided by Westrick.

The initiative consolidates facilities and delivery routes as FedEx integrates its Express and Ground operations.

“Fewer handoffs and consolidated routes will ultimately improve speed and reliability,” the information sheet says.

FedEx has optimized about 490 stations in the U.S. and Canada, with nearly 45% of eligible average daily package volume flowing through those stations, according to the information sheet. The company expects that share to reach 65% by the end of this calendar year.

FedEx historically operated separate Express, Ground and Freight networks. In April 2023, the company announced plans to consolidate Express, Ground and its services division into Federal Express Corporation. The corporate merger took effect June 1, 2024, while the integration of facilities and delivery routes continued, according to company filings.

The consolidation was part of FedEx’s broader DRIVE cost-cutting program. The company says it achieved its goal of $4 billion in structural cost reductions by fiscal 2025, including $1.8 billion in fiscal 2024 and another $2.2 billion in fiscal 2025, according to its fiscal 2025 shareholder letter.

Network 2.0 and associated consolidation initiatives are expected to produce an additional $2 billion in savings by the end of calendar 2027, according to the company’s March 2026 investor presentation.

FedEx expects to complete the U.S. implementation of Network 2.0 by then. Implementation in Canada was completed in fiscal 2025, according to its fiscal 2026 annual report.