FedEx CEO’s message to employees on 10% Job cuts
The latest news from the CEO of FedEx is that a total of 10,000 jobs will be cut. But there are no details yet on which countries will be impacted, what businesses have been affected, or what type of people are likely to be let go.
It is a multinational courier delivery services company with locations around the world. The company’s subsidiaries include FedEx Express and FedEx Ground, FedEx Custom Critical (formerly FedEx Kinkos), Freight Runners International of America, and Flight Express. In the fiscal year 2016, it processed 32 million U.S. packages and over 1.5 billion pieces of freight, or roughly 39 million tons.
FedEx Corporation is a package delivery company, logistics provider, and freight transportation corporation. The firm has its headquarters in Memphis, Tennessee. FedEx Corporation operates international courier services and logistics through FedEx Express, an air transport division that provides air express operations via hubs in Memphis and Indianapolis. The firm operates scheduled air service to cities in the United States including its corporate headquarters city of Memphis, Tennessee; aeroports in Memphis and Louisville, Kentucky; passenger airlines at FedEx hubs in Memphis and Louisville; as well as cargo airlines at Detroit Metro Airport. The firm also provides freight transportation through its Ground segment.
The company is known for its expertise in the areas of supply chain and logistics. The company was founded as Pacific Express in 1973 by Ted Forstmann and William J. Macomber to provide small packages of up to 4 lb. to customers in the US and Canada who did not use United Parcel Service (UPS) or Federal Express. Because they could not offer small package services at that time. Since then, It has grown into one of the world’s largest transportation companies operating at domestic, international, and business levels.
FedEx Chief Executive Officer new announcement for employees
As a result of changes in the global economy, FedEx has decided to reduce its workforce by 10%, or approximately 15,000 employees over the next several months. This includes a reduction in management personnel (including Executive Leaders), skilled tradespeople, and airplane maintenance personnel.
In a message to employees, FedEx CEO Frederick W. Smith said the company has taken another major step to improve its cost structure and focus on low-cost business models. These actions are designed to help facilitate the transition to an integrated global logistics provider, which will allow us to fully capture the opportunities in our business. These actions also reflect our commitment to creating value through one of the most forward-thinking workforces in the industry.
Fedex Corporation is one of the world’s largest transportation and logistics companies with total revenues of $126 billion in 2013. The company operates over 80 international and domestic cargo delivery units, covering 160 countries and territories worldwide. Its units supply ground merchandise from factories, warehouses, retail outlets, manufacturers, and distributors around the world.
FedEx to 10% job cuts
The company has decided to conduct 10% job cuts,which is expected to affect 4% of the workforce by 2018. The safety of our employees and customers remains our top priority. And we are confident that these actions will strengthen our overall capacity and performance to continue meeting the needs of both businesses and consumers.
As part of its ongoing efforts to position FedEx for future growth and profitability in the face of increasing price competition and other headwinds, the FedEx Corporation today announced plans to implement across operating segments a reduction in force by approximately 10% on January 3, 2016. A total of approximately 4,000 positions will be eliminated globally, fewer than 1% of the Company’s global workforce.
FedEx provides global e-commerce services with a global logistics platform that includes information technology systems and advanced air traffic management data. It Ground is the leading provider of package volume in North America with annual revenues greater than $40 billion. The Blue-collar workers at its are the backbone that maintains FedEx’s service reliability and delivery quality. Their dedication to excellence helps them excel in the logistics and transportation industry by helping their employers achieve their goals.
Please accept this message from FedEx management. This is a necessary action that we hope will improve the business. We realize the impact it will have on many of you. We ask that you take advantage of these workforce management opportunities that are available, while they are available to you. Thank you for your cooperation and understanding through this difficult time.
FedEx Company Profile
The FedEx Company Profile is a comprehensive overview of the company’s business operations, including information on corporate strategy and operations.
FedEx Corporation, together with its operating companies, is a global player that delivers superior business to consumers and businesses around the world. We help businesses grow through TNT Express (It’s air contract carrier in Europe), TNT Post (FedEx’s mailbox service provider in Europe), it’s Network Operations (FedEx’s distribution center services company), FedEx Ground Package System (FedEx’s package delivery service) and Freight Focus (FedEx Freight unit offering transportation solutions for shippers of all kinds).
FedEx is the largest transportation company in the world. It is the global leader in logistics and delivery services, offering global trade consumers, shippers. And businesses access to broad shipping networks in more than 220 countries and territories around the world.