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I’ve seen this pattern play out before at other major tech-logistics firms. When leadership starts talking about 'operational excellence' and 'headcount justification' in the same breath, it’s almost always a precursor to a restructuring phase. You’re right to be cautious; the lack of backfilling for contractors is usually the first sign of a stealth hiring freeze or an attempt to lower the burn rate before a formal announcement. Keep your resume updated and start discreetly feeling out other opportunities just in case. It’s better to be prepared for the worst than to be caught off guard when the 'optimization' finally hits your specific unit.
Honestly, the atmosphere has been suffocating lately. I’ve noticed the exact same trend in my regional center—constant audits and shifting goalposts make it feel like they’re just looking for reasons to justify trimming the fat. It’s draining to perform at 110% while constantly wondering if your role is next on the chopping block. If you’re already feeling the squeeze and noticing that contractor positions are disappearing, trust your gut. Management rarely telegraphs these moves clearly, but the behavior you’re describing is classic prep-work for a reduction in force. Don't wait for the axe to fall before looking for an exit strategy.