Global shipper FedEx (NYSE:FDX) plans to offer buyouts to employees in the U.S., the company announced Monday, citing the need to cut costs.
The buyouts will be aimed mostly at the company’s Express and Services units, though employees close to retirement also will have the chance to accept a package in exchange for stepping down sooner.
Express has been suffering in recent years as people forgo quick delivery — which usually commands a significant pricing premium — for cheaper options. The segment employs over 146,000 people, making it FedEx’s largest segment.
Meanwhile, Services, one of FedEx’s smallest segments, employs 12,500. The segment encompasses both the logistic elements of FedEx’s operations as well as FedEx Office, the rebranded Kinko’s.
FedEx previously had warned that cost-cutting measures might required due to slow growth. The company’s own projection of first-quarter earnings — $1.45 to $1.60 — fell well below predictions of $1.70 made by Wall Street analysts.
— Ryan Hauck, InvestorPlace