FedEx to consolidate its business units, in cost-cutting measure

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FedEx says it will consolidate its ground, express and freight operating companies into a single organization to cut costs.

FedEx, the Memphis, Tenn.-based delivery giant, this morningWhy it matters:

The move reflects increased financial pressures on delivery companies as labor costs grow, pandemic-era volume abates and a possible recession looms. It's also a major shift from the vision of FedEx founder and former CEO Fred Smith, who extolled the virtues of the independent business units with their own management teams.FedEx says the consolidation will be completed by July 2024. It also announced a 10% dividend increase and changes to executive compensation."The new structure more closely resembles that of FedEx's chief rival, United Parcel Service, which has long run a single network to handle air and ground shipments.

 

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So they're all applying for their jobs again, then.

Good. Time for the Teamsters to organize FedEx.

Will this make ground better or express worse

Can you imagine the divisional infighting that underlies this action.

Expect even more delays in service

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