FedEx is laying off up to 2,000 employees (2024)

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FedEx is laying off up to 2,000 employees? ›

Referenced Symbols. FedEx Corp. said Wednesday it's reducing its European workforce by 1,700 to 2,000 employees in a cost-cutting move to save up to $175 million a year. said it expects to incur costs of $250 million to $375 million for severance benefits and legal and professional fees.

Dive Insight: The layoffs come in the thick of FedEx's Network 2.0 initiative, consolidating its separate Express and Ground networks to reduce the number of stations and delivery routes it uses. By cutting facilities and routes that overlap with others, FedEx can get packages to customers in a more efficient manner.

The Memphis, Tennessee-based company said it is cutting jobs and consolidating some teams to streamline its workforce and reduce structural costs. FedEx anticipates it will lay off 1,700 to 2,000 employees, reportedly costing the company between $250 million and $375 million through the 2026 fiscal year.

FedEx filed 40 WARN layoff notices from May 2001 to Jul 2024 in California, Colorado, Connecticut, Florida, Georgia, Hawaii, Iowa, Illinois, Indiana, Maryland, Missouri, New Jersey, New York, Ohio, Oregon, South Carolina, Tennessee, Texas and Vermont.

FedEx wants to reduce its head count in Europe by as many as 2,000 people as the parcel-delivery giant continues its cost-cutting efforts. The Memphis-based delivery company said it would remove between 1,700 and 2,000 positions on European back-office and commercial teams, according to a Wednesday securities filing.

FedEx's odds of distress is under 8% at this time. It has tiny probability of undergoing some form of financial crisis in the near future. Probability of bankruptcy shows the probability of financial torment over the next two years of operations under current economic and market conditions.

Quarterly operating income for the air-based Express unit fell 60%, hit by volatile macroeconomic conditions, muted retailer restocking and reduced demand from its largest customer, the U.S. Postal Service (USPS). The U.S. Post Office has been diverting more packages from higher-margin air services to ground services.

FedEx Corp. is announcing today at its DRIVE Investor Event that it will consolidate its operating companies into one organization, creating efficiencies that will enhance the company's ability to meet the evolving needs of customers and ultimately build a stronger, more profitable enterprise.

The package delivery giant missed earnings and revenue estimates on a drop in volume, lower fuel surcharges, reduced demand surcharges, and a shift toward less profitable services. FedEx cut its full-year revenue outlook for the second consecutive quarter, and now anticipates a decline.

High Turnover rate due to too many people looking for easy money for no work. Its not uncommon for people to last less than a week because they realize very quickly they may actually have to do something.

Is FedEx raising their pay? ›

1 after eligible rank-and-file members voted to ratify the contract on Aug. 22. Experts have pegged the first year's wage and benefit increase at about 9%. The increases drop dramatically in years two through four and rise again in year five, though not as dramatically as in the first year.

A decline for FedEx Express — which handles air and ground shipments globally — was due to lower international yields, which were offset in part by cost reductions and higher domestic package yields, the company said.

MEMPHIS—On Thursday, March 21, FedEx Corporation reported stronger-than-expected earnings for the third quarter of 2024, but not without committing once again to buy back millions in stock in the current quarter.

Two major problems have emerged: the handoff of packages from sorting facilities to FedEx contractors and the high turnover rate among contractor drivers.

We remain committed to expanding where the volume is and is forecasted to grow,” the spokesperson said. FedEx Freight closed 29 U.S. service centers from May to August 2023 as part of its ongoing efficiency drive.