memphis:
FedEx Corp is laying off more than 10 percent of its global management staff as the delivery company faces a shipment delay, according to the Wall Street Journal.
In an email to staff on Wednesday, Chief Executive Raj Subramaniam said the company was reducing the size of its officers and directors and consolidating some teams and functions.
According to the Wall Street Journal (WSJ), the company does not want to say how many jobs will be cut.
The company has already reduced its U.S. workforce by 12,000 since the start of the current fiscal year in June 2022, through regular turnover, a hiring freeze and other headcount initiatives, WSJ said. It had more than 550,000 employees worldwide, according to its most recent financial statement in December.
“Unfortunately, this was a necessary move to become a more efficient, agile organization,” said Raj Subramaniam, adding, “It is my responsibility to take a critical look at the business and determine where we can be stronger through the scale of better coordinate our network.” with customer demand.”
FedEx is the latest major US company, from Microsoft to 3M, to announce plans to reduce headcount as companies brace for slower economic growth this year and a slump in consumer and business spending, the financial newspaper reported.
In September, FedEx said it was freezing staff, closing 90 FedEx office locations, parking some cargo planes, reducing Sunday ground operations and closing five corporate offices to offset a sharp drop in package deliveries. The company did not say at the time whether it was a staff reduction.
The company said in December it continued to see weak demand for packages and had identified an additional $1 billion in cost savings, according to the financial newspaper. In the same month, FedEx Freight temporarily laid off some employees as demand declined, it added.
According to WSJ, FedEx has several units, such as Ground, Express, Freight, International, Logistics, Services, and Dataworks, and received criticism from some analysts regarding overlapping functions in these units.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)
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