FedEx cutting over 10% of management roles
CEO: ‘Saying goodbye to longtime colleagues and friends is difficult’
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FedEx is shedding more than 10% of its officer and director roles while working to consolidate other teams and functions.
In a letter to team members on Wednesday, company CEO Raj Subramaniam said, "This process is critical to ensure we remain competitive in a rapidly changing environment, and it requires some difficult decisions."
"Saying goodbye to longtime colleagues and friends whom we value and respect is extraordinarily difficult," he added. "Unfortunately, this was a necessary action to become a more efficient, agile organization."
Subramaniam joined FedEx in 1991 as an associate marketing analyst. In March 2022, FedEx announced that Subramaniam would take over for founder Fred Smith as the President and CEO on June 1, 2022. (FedEx)
SUPPLY CHAINS UPENDED BY COVID ARE BACK TO NORMAL
The job cuts come after FedEx announced in December that the package delivery company is prioritizing actions to quickly reduce costs in order to align fiscal 2023 costs with weaker-than-expected volume.
The company identified an incremental $1 billion in cost savings beyond its September forecast, and expects to generate total fiscal 2023 cost savings of approximately $3.7 billion relative to its initial fiscal 2023 business plan.
Revenue for the three months ended November 30 fell to $22.8 billion from $23.5 billion year-over-year.
Net income declined to $788 million from $1.04 billion.
Operating income declined 64% year-over-year due to lower global volumes, partially offset by an 8% package yield increase.
FedEx
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FDX | FEDEX CORP. | 288.11 | -5.00 | -1.71% |
MONTANA AG CONCERNED FEDEX, UPS MAY BE TRACKING GUN OWNERSHIP FOR WHITE HOUSE
FedEx announced in November that its less-than-truckload arm unit, FedEx Freight, would furlough an unspecified number of employees to match lower-than-expected demand.
The furloughs were expected to last around three months.
FedEx Freight spokesperson Miranda Yarbro told FreightWaves the furloughs – which are voluntary – would affect only a few drivers.
Currently, the transportation and business services company employees roughly 555,000 globally and delivers 16 million shipments each day.
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Bradford Betz contributed to this report.