FedEx lays off another 1000 staff
US express giant FedEx has cut another 1000 salaried staff as the firm works to reduce network capacity in its Express and Freight segments, which have been especially vulnerable to the worldwide drops in trade.
FedEx had previously laid off 900 employees from its Freight unit in February, and the latest cuts are part of a US$1 billion cost-cutting plan that resulted from a severe drop in its third-quarter profits.
“The decision was very difficult,” said Jesse Bunn, a FedEx spokesman.
“As we said in March and in December, the global economic conditions are bad and continue to get worse. Actions like this are unavoidable,” Bunn added.
It is thought that around 500 of the cuts took place at the company’s Memphis headquarters, although a company spokesman added that the losses would affect all of FedEx’s operating units, including its cargo airline and trucking divisions.
It is still not clear whether there have been any employees laid off in the Middle East; LogisticsMiddleEast.com will confirm further details as soon as these become available.