FedEx to Let Go of 3,600 Employees

by Christopher Freeburn | June 19, 2013 9:36 am

FedEx logo Plane 630 Flickr 300x200 FedEx to Let Go of 3,600 Employees[1]On Wednesday, shipping giant FedEx (FDX[2]) said that it was continuing to take measures designed to reduce annual expenses[3] by $1.7 billion within three years.

Part of that effort includes shedding about 10% of its workforce. The nation’s second-biggest shipping company said that 3,600 workers have opted to accept a voluntary buyout and that 40% of those have already left the company, the Associated Press noted.

FedEx posted fiscal fourth-quarter earnings of $303 million, down 45% from the same time last year. Adjusted EPS came in at $2.13, topping Wall Street’s forecast of $1.96 a share. Quarterly revenue of $11.44 billion narrowly missed analysts’ projections.

The company incurred $496 million in charges related to severance packages and restructuring costs during the quarter. The company noted that it plans to cut its delivery capacity for packages sent between the U.S. and Asia next month.

Shares of FedEx rose about 1% in Wednesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/06/FedEx_logo_Plane_630_Flickr.jpg
  2. FDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=FDX
  3. continuing to take measures designed to reduce annual expenses: http://www.washingtonpost.com/business/fedex-4q-profit-down-as-customers-choose-cheaper-service-amid-low-growth-economy/2013/06/19/54a9bd94-d8d9-11e2-b418-9dfa095e125d_story.html

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