The latest cuts bring FedEx’s total employee reductions to 12,000 since June, a spokeswoman said. As of May, the company had 345,000 full-time workers, according to a regulatory filing.
FedEx layoff: FedEx is laying off global officer and director jobs by more than 10% in its latest cost-saving step as economic concerns weigh on demand for package delivery. The company plans to consolidate some teams and functions in addition to the headcount reduction, part of an effort to become a “more efficient, agile organization,” Chief Executive Officer Raj Subramaniam said Wednesday in a memo to employees. The changes will align the size of the network with customer demand, he said.
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“Unfortunately, this was a necessary action to become a more efficient, agile organization. It is my responsibility to look critically at the business and determine where we can be stronger by better aligning the size of our network with customer demand,” Subramaniam was quoted as saying in a letter by Bloomberg.
The latest cuts bring FedEx’s total employee reductions to 12,000 since June, a spokeswoman said. As of May, the company had 345,000 full-time workers, according to a regulatory filing.
FedEx said the job losses include “executive management,” but didn’t give additional details on which units would be most affected.
Read full memo from CEO Raj Subramaniam to FedEx staff here:
Feb. 1, 2023 | To FedEx team members
Team,
As you know, we have embarked on a transformation effort to create the world’s most flexible, efficient, and intelligent supply chain for our customers. This process is critical to ensure we remain competitive in a rapidly changing environment, and it requires some difficult decisions.
Today we are in the process of informing a number of team members across our global enterprise that their positions have been eliminated as we reduce the size of our officer and director team by more than 10% and consolidate some teams and functions.
Saying goodbye to longtime colleagues and friends whom we value and respect is extraordinarily difficult. Unfortunately, this was a necessary action to become a more efficient, agile organization. It is my responsibility to look critically at the business and determine where we can be stronger by better aligning the size of our network with customer demand. While we have already taken many actions to that end, it was necessary to also look closely at the size of our leadership team and functions that could be consolidated.
I am sincerely grateful to those departing for the role they have played in building FedEx. We are committed to a transparent and supportive transition. Our HR team will be in touch with them today with information related to next steps including outplacement services, benefits, and severance compensation.
At FedEx, we have a rich 50-year history of evolving to meet the needs of a dynamic market. We have changed the way the world does business. I am equally confident in our ability to continue driving the world forward for the next 50 years and beyond.
Thank you for your commitment to our transformation.
Raj Subramaniam
President and Chief Executive Officer
FedEx Corporation
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The package and shipping industry experienced a surge during the pandemic amid a spike in online consumer spending. But as inflation has shrunk consumers’ wallets, it has also eaten into FedEx’s profits. The company’s stock is off roughly 20% over the past year, a report in CNBC said.
As a result, FedEx has experienced a rough first half of its fiscal year and has sought to cut costs while also raising prices to offset slowing volume.
Earlier, online payment company PayPalannounced it would cut 7% of its global workforce (2,000 full-time positions) amid a “competitive landscape” and a “challenging macro-economic environment,” CEO Dan Schulman said.
