FedEx to cut 1,000 jobs worldwide
FedEx Corp. announced it would cut about 1,000 jobs as a result of cost-cutting measures to deal with the tough economy.
FedEx Corp. announced it would cut about 1,000 jobs as a result of cost-cutting measures to deal with the tough economy.
“The company expects to eliminate about 1,000 salaried exempt positions across all FedEx companies,” said FedEx spokesman Maury Lane.
In its third-quarter earnings release, announced 19 March, FedEx said it would also reduce network capacity at both FedEx Express and FedEx Freight divisions and enact a “further reduction of personnel and work hours.”
Other cost-cutting programs include additional reductions in other spending categories, streamlining of information technology systems and expansion of previously announced pay actions to include non-US employees in some cases.
“Our financial performance was sharply lower during the quarter due to the global recession,” said Frederick W. Smith, FedEx Corp. chairman, president and CEO. “While we are gaining market share in all of our transportation segments, the downturn in our industry and the severity and expected duration of the recession require that we take additional actions.”
The cost-reduction actions are expected to result in fourth-quarter charges of approximately $100m and to reduce expenses by approximately $1bn.
