Some FedEx employees will, unfortunately, soon be back on a job search. Due to the deterioration in the global economy, the shipping giant will implement additional cost-reduction initiatives, both in the U.S. and internationally. These measures include the following:
- Network capacity reductions at FedEx Express and FedEx Freight
- Further reduction of personnel and work hours
- Expansion of previously announced pay actions to include non-U.S. employees, where permitted
- Streamlining of information technology systems and other internal processes
- Additional reductions in other spending categories
- Increased economies in the acquisition of goods and services
These cost-reduction actions are expected to result in fourth quarter charges of approximately $100 million, excluding any potential asset impairment charges. For fiscal 2010, these actions are targeted to reduce expenses by approximately $1.0 billion.
“Our goal when we implemented compensation reductions in January for U.S. salaried personnel was to both protect our business and minimize the loss of jobs,” said Smith. “With industrial production and global trade trends worsening since last quarter, we are applying these additional measures to continue to secure as many of our jobs as possible during this downturn. We remain focused on providing outstanding service, and will ensure that our actions do not impede our industry-leading customer experience.”
Tags: Job Search