AJWick
No longer mr. mom!
- Joined
- Mar 25, 2002
- Posts
- 149
FedEx seeks voluntary layoffs among US workers
Tuesday June 3, 6:41 am ET
By Betty Liu in Atlanta
FedEx has responded to a declining US air express delivery market by offering its first voluntary redundancy and early retirement programme, which will result in net costs of $130m-$160m in fiscal 2004.
The programme is expected to affect 14,000 salaried US FedEx employees. The company employs about 116,000 US workers. The scheme will not affect FedEx drivers and customer service agents, who are paid hourly.
FedEx, the world's largest air express deliverer, would not say how many workers are expected to take the severance packages, but expressed confidence that employees would be attracted by the terms, which include a $10,000 lump sum incentive and full pension benefits for those at least 50 years of age.
The company, formed in 1971, said the move underlined the difficulties in the US, its largest market. In March, while it announced third-quarter volume gains in its US ground business and package delivery overseas, the American air express business remained in the doldrums, with volume declining 1 per cent in the quarter ending December 31.
Hit by rising fuel costs and downturns in the technology and manufacturing sectors, FedEx has already reduced capital expenditures, limited hiring and cut aircraft orders. It has also increased emphasis on its fast-rising ground business, which is still only one-fifth the size of its biggest rival, United Parcel Service. UPS, with its fleet of familiar brown trucks, has long dominated US deliveries by ground.
Other air express carriers, including DHL Worldwide Express, are jumping into the lucrative ground package delivery market in the US. DHL Worldwide, owned by German postal monopoly, Deutsche Post, bought Airborne's ground delivery unit earlier this year for more than $1bn.
The FedEx redundancy programme, while voluntary, is still sensitive to a company that has a no-layoff philosophy. FedEx said it would save the company a further $150m to $190m in the next fiscal year starting June 1 2004.
The company, based in Memphis, Tennessee, expects earnings per share in fiscal 2004 to be between $3.00 and $3.15, lower than the $3.19 a share estimate issued by First Call.
I just hope there are no furloughs in any dept.!!!!!
Tuesday June 3, 6:41 am ET
By Betty Liu in Atlanta
FedEx has responded to a declining US air express delivery market by offering its first voluntary redundancy and early retirement programme, which will result in net costs of $130m-$160m in fiscal 2004.
The programme is expected to affect 14,000 salaried US FedEx employees. The company employs about 116,000 US workers. The scheme will not affect FedEx drivers and customer service agents, who are paid hourly.
FedEx, the world's largest air express deliverer, would not say how many workers are expected to take the severance packages, but expressed confidence that employees would be attracted by the terms, which include a $10,000 lump sum incentive and full pension benefits for those at least 50 years of age.
The company, formed in 1971, said the move underlined the difficulties in the US, its largest market. In March, while it announced third-quarter volume gains in its US ground business and package delivery overseas, the American air express business remained in the doldrums, with volume declining 1 per cent in the quarter ending December 31.
Hit by rising fuel costs and downturns in the technology and manufacturing sectors, FedEx has already reduced capital expenditures, limited hiring and cut aircraft orders. It has also increased emphasis on its fast-rising ground business, which is still only one-fifth the size of its biggest rival, United Parcel Service. UPS, with its fleet of familiar brown trucks, has long dominated US deliveries by ground.
Other air express carriers, including DHL Worldwide Express, are jumping into the lucrative ground package delivery market in the US. DHL Worldwide, owned by German postal monopoly, Deutsche Post, bought Airborne's ground delivery unit earlier this year for more than $1bn.
The FedEx redundancy programme, while voluntary, is still sensitive to a company that has a no-layoff philosophy. FedEx said it would save the company a further $150m to $190m in the next fiscal year starting June 1 2004.
The company, based in Memphis, Tennessee, expects earnings per share in fiscal 2004 to be between $3.00 and $3.15, lower than the $3.19 a share estimate issued by First Call.
I just hope there are no furloughs in any dept.!!!!!
