FedEx to Trim Workforce, Offer Voluntary Buyout (FDX)

PUBLISHED: Aug 14 2012 @ 08:49 | Comments (0) | More info about Ed Liston

In an effort to restructure its struggling businesses, world’s biggest cargo shipper in terms of revenue, FedEx Corp. (NYSE:FDX) announced on Monday that it will offer a voluntary buyout to an unspecified number of its workforce.

The workforce reduction will be primarily focused on FedEx’s U.S. support services rather than operational divisions, the company said; and, most of the buyouts will be coming from FedEx Express and other service units. At present, these units employ over 158,000 workforces.

The company said that it is yet to determine the eligibility of the planned buyout.

Lately, amid economic slowdown, FedEx’s domestic Express unit has struggled as packages volume fell with customers opting cheaper options over costlier overnight air delivery. Company’s margins at its Express unit have also fallen behind the rivals such as Deutsche Post AG’s DHL Unit and United Parcel Service Inc.

Back in June, while reporting the fourth-quarter results, the company said that its full-year cargo volume growth slumped for the first time in last two years even as quarterly profits declined.

As a result, to tackle both the weakness in the international markets and growing competition, FedEx outlined “significant” cost cutting measures across several of its business units.

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