FedEx hiring under H-1B programme triggers controversy following job cuts for Americans, Indian origin chief faces criticism

FedEx, one of the world’s largest logistics companies, is drawing criticism following revelations that it substantially expanded its intake of foreign workers under the H-1B visa scheme after securing a significant federal delivery contract. The company reportedly reduced several American-held positions while increasing international recruitment, triggering a wave of online backlash and political concern.

Surge in foreign hiring

According to reports from The Dallas Express, official records indicate that FedEx drastically raised its hiring of overseas employees after winning a multibillion-dollar government contract in late 2022. The company was one of three firms chosen by the US Transportation Command to handle nationwide package deliveries for government agencies, a project valued at around 2.24 billion dollars. The first phase of the contract began in April 2023 and is scheduled to continue until September 2026, with a possible extension to 2030.

Between 2022 and 2025, the number of approved H-1B visa employees at FedEx grew from about 20 to nearly 500, with the steepest increase occurring during 2024 and 2025. Many of these job roles were based in Texas, covering technical and commercial positions with salaries ranging from 100,000 to 115,000 dollars.

Company’s explanation

Addressing the concerns, a FedEx spokesperson told The Dallas Express that all hiring decisions are driven by business needs and required expertise. The statement affirmed the company’s commitment to following federal regulations while maintaining a diverse and capable workforce. The representative added, “Across our operations, we employ people with varied skill sets and continue to comply with all applicable immigration laws.”

Online outrage

The company’s Indian-origin chief executive, Rajesh “Raj” Subramaniam, has come under strong criticism on social media, where many users accused FedEx of replacing American workers with foreign employees. One user wrote that the decision exposed double standards in employment practices, while another accused the leadership of prioritising nepotism. Others argued that companies should face stricter rules for employing H-1B holders, suggesting that such roles be reserved for foreign talent only when qualified American candidates cannot be found within a six-month period.

Details of the contract

The government contract, part of the Next Generation Delivery Service 2 initiative, was designed to streamline shipment services for federal agencies. FedEx is expected to handle a large share of deliveries under this arrangement. While several visa petitions coincided with reported layoffs in locations such as Plano, not all applications resulted in confirmed hires, leaving uncertainty over the final number of international employees brought on board.