FedEx "Network 2.0" Hits 25% Completion Mark as EV Fleet Grows

The integration of Ground and Express units accelerates with aggressive facility closures and new electrification partnerships.

At a Glance:

• Status: "One FedEx" integration is 25% complete; targeting 40% by May 2026.
• Consolidation: Approximately 140 facilities have been closed to reduce redundancy.
• Fleet: New order placed for 53 electric trucks from manufacturer Harbinger.
• Economic Footprint: FedEx contributed $126 billion to the global economy in FY2025.

The Roadmap: Consolidation at Full Throttle

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FedEx is moving past the planning phase of its historic "Network 2.0" restructuring. According to updates provided to analysts on Nov. 19. 2025, the massive overhaul, which merges the historically separate Express (air/time-definite) and Ground (trucking/day-definite) networks, has reached the 25% completion mark.

Management has set a firm timeline for the next phase, targeting 40% completion by May 31, 2026 (the end of Fiscal Year 2026). The full implementation across the U.S. network is scheduled to be finalized by the end of the 2027 calendar year.

This consolidation is the primary driver behind the company's projected $1 billion in expense reductions for FY 2026, achieved largely by eliminating duplicate infrastructure; the carrier confirmed it has already shuttered approximately 140 facilities.

FedEx’s Next Step is to Electrify the Middle Mile

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While shrinking its real estate footprint, FedEx is upgrading its physical fleet. On Tuesday, November 18, the company inked an initial deal with Harbinger, an electric vehicle manufacturer, for 53 electric medium-duty chassis.

These units are slated for delivery by the end of 2025. This investment signals a continued commitment to electrifying the "middle mile" and pickup-and-delivery (P&D) segments, even as the broader industry faces headwinds regarding heavy-duty charging infrastructure.

The $126 Billion Engine Behind the Overhaul

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Supporting these operational shifts, FedEx released its 2025 Global Economic Impact Report earlier this month. The report quantifies the carrier's role in global trade, estimating that FedEx contributed more than $126 billion in direct and indirect impact to the global economy during fiscal year 2025. 

This figure underscores the high stakes of the Network 2.0 transformation; ensuring service continuity while re-engineering such a massive economic engine is critical for global supply chains.

Efficiency vs. Reliability

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FedEx is navigating a delicate balance between cost-cutting and service reliability. Reaching 25% completion validates the operational theory of the merger, but the upcoming push to 40% will likely involve more complex facility rationalizations in higher-density markets. 

The deal with Harbinger, while small in volume (53 units), is strategically significant, it diversifies FedEx’s EV procurement strategy, ensuring they are not reliant on a single OEM as they pursue 2040 carbon-neutral goals.