FedEx (NYSE:FDX) stock is on the move Wednesday after the company announced plans to consolidate some of its operations.
According to a press release from the delivery company, this will see it unite its various operating companies under one FedEx banner. That includes its FedEx Express, FedEx Ground, FedEx Services, and other FedEx businesses.
The company says this change is part of its DRIVE transformation. The goal of this is to reduce costs by simplifying its business structure. The company expects to complete this change in 2024 and realize $4 billion in permanent cost reductions for fiscal 2025.
Raj Subramaniam, President and CEO of FedEx, said the following about the change:
“We are building a simplified experience for our customers, who are at the center of everything we do, so they can adapt to the market. This combination will allow us to provide customers with even greater value, offering the most advanced data-driven insights to help them make smarter decisions for their business.”
How This Affects FDX Stock
FedEx moving to simplify its operations is a good move for the company. It should allow it to better serve customers while consolidating its business to weather a rough economy. That could also benefit FDX stock and prevent dips due to the weak economy.
FDX stock is up 2.6% as of Wednesday morning and is up 30.9% since the start of the year.
Investors looking for more of the latest stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Wednesday! Among that is what has shares of InflaRx (NASDAQ:IFRX) stock up, the latest on artificial intelligence (AI) stocks, and more. You can find out all about these topics at the following links!
More Wednesday Stock Market News
- InflaRx (IFRX) Stock Pops as FDA Grants Emergency Use Authorization
- Why Are AI Stocks AI, BBAI, GFAI, SOUN Down Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
