FedEx Layoffs 2024: What to Know About the Latest FDX Job Cuts (2024)

FAQs

FedEx Layoffs 2024: What to Know About the Latest FDX Job Cuts? ›

FedEx will cut between 1,700 and 2,000 jobs in Europe. The company is mostly focusing on back-office jobs, with the cuts estimated to save between $125 million and $175 million annually starting in fiscal 2027. FedEx expects the layoffs to take place over the next 18 months.

FedEx will consolidate all its operating companies into a single organization, effective June 2024. FedEx Corp. provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services.

The Memphis, Tennessee-based company said it is cutting jobs and consolidating some teams to streamline its workforce and reduce structural costs. FedEx anticipates it will lay off 1,700 to 2,000 employees, reportedly costing the company between $250 million and $375 million through the 2026 fiscal year.

FedEx is shuttering four facilities in southwestern Florida in 2024, according to Worker Adjustment and Retraining Notification (WARN) Act notices filed on April 17. The four closures will result in the layoff of 220 couriers and eight managers.

FedEx wants to reduce its head count in Europe by as many as 2,000 people as the parcel-delivery giant continues its cost-cutting efforts. The Memphis-based delivery company said it would remove between 1,700 and 2,000 positions on European back-office and commercial teams, according to a Wednesday securities filing.

This year the PGA Tour handed out $100 million for its FedEx Cup bonus pool, with Scheffler, the ultimate champion, earning $25 million. We understand that in this PGA Tour vs. LIV Golf world that paydays are exponentially greater than they were just a few years ago.

“No carrier is big enough to be able to buy FedEx Freight,” he said, knocking down speculation that XPO, another large LTL carrier, would bid for the FedEx unit. “And you can't integrate two carriers” because LTL networks are so asset-intensive there would be huge redundancy in terminals.

Quarterly operating income for the air-based Express unit fell 60%, hit by volatile macroeconomic conditions, muted retailer restocking and reduced demand from its largest customer, the U.S. Postal Service (USPS). The U.S. Post Office has been diverting more packages from higher-margin air services to ground services.

Two major problems have emerged: the handoff of packages from sorting facilities to FedEx contractors and the high turnover rate among contractor drivers.

FedEx's odds of distress is under 8% at this time. It has tiny probability of undergoing some form of financial crisis in the near future. Probability of bankruptcy shows the probability of financial torment over the next two years of operations under current economic and market conditions.

How to see layoffs coming? ›

We remain committed to expanding where the volume is and is forecasted to grow,” the spokesperson said. FedEx Freight closed 29 U.S. service centers from May to August 2023 as part of its ongoing efficiency drive.

For example, FedEx might offer you one to two weeks' salary (or even a month's salary) for each year of service. Make sure that the severance package will be enough for you to make the transition to the next phase of your life.

FedEx Suspension Took Effect on February 3, 2022

The labor shortage is not isolated to any industry, becoming a nationwide problem in a matter of weeks. While many believed the shortage had reached its worst in January 2021, the trend of fewer workers appears to be a new standard.

High Turnover rate due to too many people looking for easy money for no work. Its not uncommon for people to last less than a week because they realize very quickly they may actually have to do something.

People are our greatest asset at FedEx. We are committed to equal employment opportunities. We hire, contract, evaluate, compensate, and promote team members based on merit, qualifications, job-related requirements, and performance. We provide reasonable accommodations to team members with disabilities.

Memphis-based FedEx now expects fiscal 2024 earnings in the range of $17.25 to $18.25 per share, compared with its prior forecast of $17 to $18.50 per share.

India, May 09, 2024 — FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and one of the world's largest express transportation companies, is investing over USD 2 million toward sustainable communities. FedEx will support 40 urban conservation projects worldwide, including India from March through May of 2024.

According to analysts, FDX price target is 328.29 USD with a max estimate of 360.00 USD and a min estimate of 215.00 USD. Check if this forecast comes true in a year, meanwhile watch FedEx Corporation stock price chart and keep track of the current situation with FDX news and stock market news.

Future Growth

FedEx is forecast to grow earnings and revenue by 9.3% and 4.1% per annum respectively. EPS is expected to grow by 12.6% per annum. Return on equity is forecast to be 18.1% in 3 years.