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Blame It On The Robots: FedEx Scraps Plans for a Giant Distribution Center

March 26, 2018, 10:12 AM UTC

Machines really are taking jobs.

FedEx on Saturday canceled plans to build a new distribution center in Indiana after deciding that “automation and technological enhancements” at other centers have rendered the one planned in the city of Greenwood unnecessary.

The planned facility, which was to cost $259 million and cover 608,000 square feet, would have employed over 400 people in full- or part-time jobs. According to The Indy Star, the delivery giant initially cited “projected operational needs” as the motive behind scrapping the distribution center.

In a later statement, FedEx said it’s “constantly evaluating the capacity needs of its network. Automation and technological enhancements we have made to our network over the last decade have enabled us to continue to increase the utilization of our existing capacity while serving the growing needs of our customers.”

FedEx reportedly plans to continue to move ahead with a $1.5 billion expansion of its existing operations at the Indianapolis airport, an investment that was announced after the GOP tax bill passed in December.