Texas is closing out the year with its sharpest wave of mass layoffs since the pandemic, as 1,517 jobs disappear across five major sectors. The cuts, concentrated in government contracting, retail, manufacturing, logistics, and healthcare, are reshaping local labor markets and straining communities from the Dallas–Fort Worth metro to the Rio Grande Valley.
DLH Solutions, United Supermarkets, and FedEx are among the companies leading the reductions, while skilled nursing and child welfare facilities also face permanent closures. The losses highlight vulnerabilities tied to contracts, funding, and technological shifts. “We are building a stronger foundation to deliver the highest-quality services for our guests,” said Sidney Hopper, United Family Division President.
Here’s what’s happening across Texas’ hardest-hit industries.
Government contracts pulled, jobs vanish
The first wave of layoffs hit government contracting, with DLH Solutions eliminating 298 positions at its Dallas Consolidated Mail Outpatient Pharmacy in Lancaster. The final layoff date was set for November 29.
DLH Solutions, a federal contractor in “science research and development, systems engineering and integration, and digital transformation,” has not publicly disclosed the reason for the reduction. Texas Workforce Commission records show these cuts rank among the largest single reductions reported recently.
Jobs tied to federal contracts are highly volatile. When awards shift or end, entire worksites can close quickly. Surrounding businesses—from restaurants to service providers—experience sudden revenue drops, illustrating how dependent local economies can be on a single employer.
Retail restructuring in Lubbock
Retail and grocery employment is also under pressure. United Supermarkets, the Lubbock-based Albertsons subsidiary, is cutting 126 corporate positions at its headquarters due to “a significant investment in our operating systems,” aimed at strengthening operations across its banners. Store-level employees are not affected. Sidney Hopper emphasized that the company is “building a stronger foundation to deliver the highest-quality services for our guests.”
These reductions follow the collapse of a proposed $25 billion merger between Kroger and Albertsons in late 2024. With grocery margins typically only 1–2%, cutting management roles is key for efficiency. Yet even these targeted cuts reduce household income in a metro of roughly 500,000 residents, potentially weakening demand for local businesses dependent on headquarters employees.
Technology shift hits Texas chip workers
Manufacturing layoffs are concentrated at Texas Instruments, which is phasing out 150-millimeter wafer production at Dallas and Sherman facilities. The transition toward 300-millimeter wafers—the current industry standard—results in up to 183 job losses during the closure phase. Operations dating back to the 1980s are now obsolete.
The shift aligns with industry modernization. While 300mm production increases output and reduces long-term costs, employees must consider retraining, relocation, or separation. Local suppliers and service providers tied to the legacy lines may see reduced orders, even as newer 300mm facilities ramp up, highlighting the ripple effects of technology-driven restructuring.
Logistics hubs exposed to single-client dependency
Transportation and logistics have seen the largest cluster of layoffs. FedEx is closing its Coppell supply-chain facility, cutting 856 jobs by April 29, 2026. A WARN Act filing revealed that a major customer moved its business to a new provider, prompting the closure. Phased separations begin January 16, 2026, with 60 days’ notice to affected workers.
Additionally, Amazon contractor Accelore Group is cutting 214 delivery positions in Dallas–Fort Worth, effective November 1, 2025, after ending its contract with Amazon. Amazon is working to place displaced workers with other local partners. These closures reduce package-handling capacity in a key logistics corridor, risking slower deliveries and underscoring the vulnerability of workers dependent on single major clients.
Healthcare and child welfare under funding strain
Healthcare and social services have not been spared. Glen Children’s Home in San Benito, Rio Grande Valley, permanently closed and laid off 424 employees effective November 17, citing declining federal funding. CEO Chase Palmer emphasized the organization’s commitment to “complying with all applicable regulations and ensuring that our employees have the resources they need during this transition.”
Cottonwood Creek Healthcare Community in Richardson will close on December 1, 2025, dismissing all 70 employees. Medicaid reimbursement pressures and federal funding shortfalls are squeezing budgets across the sector. In areas like the Rio Grande Valley, already facing rising unemployment, these closures deepen both economic and social vulnerability for communities dependent on these services.
Regional impact and what comes next
Across Texas, 1,517 mass layoff positions have been recorded in the fourth quarter of 2025, defined as sudden, involuntary cuts affecting at least 50 workers at a single location. Dallas–Fort Worth accounts for roughly 1,466 of these losses across multiple employers, with unemployment rising from 3.7–3.8% in July to 4.0–4.4% in recent months. Economists estimate payroll losses of $15–30 million, with related declines in consumer spending of $24–48 million.
Smaller communities face similar pressures as headquarters reductions, facility closures, and logistics disruptions ripple outward. Drivers of layoffs—contract reliance, single-client exposure, technology shifts, and funding pressures—reflect broader economic vulnerabilities. Displaced workers will likely face retraining, relocation, or permanent career changes, while policymakers and local leaders weigh responses to stabilize affected regions and strengthen resilience against future economic shocks.
Sources
Texas Workforce Commission – WARN Act Notices, 2025
DLH Solutions layoff notice, November 2025
United Supermarkets layoff notice, November 2025
FedEx layoff notice, November 2025
Cottonwood Creek Healthcare notice, September 2025
Federal Reserve Bank of Dallas – Economic Indicators, October 2025
Goldman Sachs Economic Research – Labor Market Analysis, December 2025
