Scuba_Steve
Well-Known Member
FedEx Corp is laying off more than 10% of its global management staffers as the delivery company faces a shipping slowdown.
In an email to staff Wednesday, Chief Executive Raj Subramaniam said 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 being eliminated.
The Memphis, Tenn.-based company has already trimmed 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 head-count initiatives. It had more than 550,000 employees globally, according to its most recent financial statement in December.
“Unfortunately, this was a necessary action to become a more efficient, agile organization,” said Mr. Subramaniam. “It is my responsibility to look critically at the business and determine where we can be stronger by better aligning the size of our network with customer demand.”
FedEx is the latest large U.S. corporation, from Microsoft Corp. to 3M Co., to announce plans to trim its workforce as businesses brace for slower economic growth this year and a pullback in spending by consumers and corporations.
In September, FedEx said it was freezing hiring, closing 90 FedEx Office locations, parking some cargo aircraft, reducing Sunday ground operations and closing five corporate offices to offset a sharp drop in package deliveries. The company didn’t say at the time whether it was cutting staff.
The company said in December that it continued to see weak demand for packages and that it had identified an additional $1 billion in cost savings. In the same month, FedEx Freight temporarily furloughed some workers as demand softened.
www.wsj.com
In an email to staff Wednesday, Chief Executive Raj Subramaniam said 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 being eliminated.
The Memphis, Tenn.-based company has already trimmed 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 head-count initiatives. It had more than 550,000 employees globally, according to its most recent financial statement in December.
“Unfortunately, this was a necessary action to become a more efficient, agile organization,” said Mr. Subramaniam. “It is my responsibility to look critically at the business and determine where we can be stronger by better aligning the size of our network with customer demand.”
FedEx is the latest large U.S. corporation, from Microsoft Corp. to 3M Co., to announce plans to trim its workforce as businesses brace for slower economic growth this year and a pullback in spending by consumers and corporations.
In September, FedEx said it was freezing hiring, closing 90 FedEx Office locations, parking some cargo aircraft, reducing Sunday ground operations and closing five corporate offices to offset a sharp drop in package deliveries. The company didn’t say at the time whether it was cutting staff.
The company said in December that it continued to see weak demand for packages and that it had identified an additional $1 billion in cost savings. In the same month, FedEx Freight temporarily furloughed some workers as demand softened.
FedEx Is Laying Off More Than 10% of Its Management Ranks
The company is reducing the size of its officer and director ranks and consolidating some teams and functions as it faces a shipping slowdown.
www.wsj.com
