fdx extension 2.64%
it is laying off more than 10% of its global executive staff as the delivery company faces a slowdown in shipments.
Chief Executive Officer Raj Subramaniam said in an email to staff on Wednesday that the company was reducing the size of its officer and director ranks and consolidating some teams and functions. The company declined to say how many jobs were eliminated.
The Memphis-based company has already reduced its U.S. workforce by 12,000 since the start of the current fiscal year in June 2022, through regular attrition, a hiring freeze and other headcount initiatives. It had more than 550,000 employees worldwide, according to its latest December report.
“Unfortunately, this was a necessary action to become a more efficient and agile organization,” said Subramaniam. “It is my responsibility to critically examine the business and determine where we can be strongest by better aligning the size of our network with customer demand.”
FedEx is the last major US company, of Microsoft Corp.
at 3M Co.
to announce plans to reduce workforces as companies brace for slower economic growth this year and lower spending by consumers and businesses.
In September, FedEx said it was freezing hiring, closing 90 FedEx offices, parking some cargo planes, reducing Sunday ground operations and closing five corporate offices to offset a sharp decline in package deliveries. The company did not say at the time whether it was cutting staff.
The company said in December that it continued to see weak package demand and identified an additional $1 billion in savings. That same month, FedEx Freight temporarily laid off some workers due to easing demand.
FedEx has several units, such as Ground, Express, Freight, International, Logistics, Services and Dataworks, and has received criticism from some analysts regarding the overlapping functions in these units. The company has also come under pressure from activist investor DE Shaw Group.
The cuts come one day after United Parcel Service Inc.
it said it was facing a slowdown in global delivery volumes and expected its sales for the year could decline for the first time since 2009.
FedEx said the latest efforts to reduce its leadership team will not affect its customer services.
Shares of FedEx rose 2% to $197.63 in midday trading, while UPS shares fell about 1.7%.
Write to Esther Fung at [email protected] and Will Feuer at [email protected].com
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