GXO laid off hundreds of workers in DeSoto County after xAI bought facility

GXO Logistics announced plans to lay off 220 workers at its Southaven, Mississippi facility by January 31, 2026, according to a Worker Adjustment and Retraining Notification (WARN) filed with the Mississippi Department of Employment Security. This decision came weeks after the property at 2400 Stateline Rd. was acquired in mid-December 2025 by MZX Tech LLC, a company linked to xAI through its shared Palo Alto, California, headquarters. GXO cited "current economy and changes in market demands" for the closure. Meanwhile, Mississippi Governor Tate Reeves visited DeSoto County in January 2026 to celebrate the groundbreaking of xAI's third Mid-South data center at the same location. Governor Reeves lauded xAI's investment as the largest private-sector investment in the state's history, projected to create over 1,000 jobs in DeSoto County. GXO also filed a separate WARN notice in Tennessee in February 2026 for 185 layoffs at a Memphis distribution center, adding to 200 layoffs in Memphis in 2024.