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FedEx to cut global senior roles by 10 percent

FedEx

Fedex's owner had an extraordinary stroke of good luck to save the company

FedEx is looking to reduce its global management roles by 10 percent in a bid to save money amid a shipping downturn.

CEO Raj Subramaniam told staff employees about the layoffs but did not specify the number of jobs affected.

The move means the officer and director ranks will be reduced as well as consolidating some teams and functions.

READ MORE: PAYPAL IS CUTTING 2,000 EMPLOYEES IN A COST-CUTTING DRIVE

Mr. Subramaniam said: “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.”

This is the second round of job losses, as the Memphis-based company shrank its US workforce by 12,000 last year.

It was mainly done through regular attrition, a hiring freeze, and other measures. 

READ MORE: WORKDAY CUTS HUNDREDS OF JOBS GLOBALLY BUT DENIES OVERHIRING

FedEx is the latest US giant to announce job cuts, following other big companies like Microsoft, Amazon, and 3M.

Businesses across the nation are gearing up for an economic slump this year and a cutback in spending by consumers and corporations.

FedEx announced a hiring freeze in September and has closed 90 FedEx Office locations amid other changes to withstand a steep decline in deliveries.

At the time, the company didn’t mention whether it was axing employees.

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In December, it reported persistently low package demand and said it had found an extra $1 billion in cost reductions.

FedEx Freight laid off several employees in the same month as demand fell.

The senior-level cuts come a day after United Parcel Service revealed a decline in global delivery volumes.

FedEx claimed the latest measures to downsize its senior team would have no impact on customer service.

Source: The Wall Street Journal

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