On Monday, Memphis-headquartered FedEx introduced that it’s going to shut dozens of places, consolidate operations, and furlough employees.
In a Could 1, 2023, announcement, firm leaders mentioned that they are going to shut 29 FedEx Freight places in August.
FedEx launched the next assertion outlining the situation closures in addition to deliberate consolidations and furloughs:
“As FedEx continues to adapt to an evolving world enterprise surroundings, FedEx Freight has introduced a choice to shut 29 freight places and consolidate its operations into different places, efficient Aug. 13, 2023. We repeatedly evaluate our community to make sure now we have the precise design to handle altering market dynamics. By way of that course of, we recognized alternatives to consolidate operations in sure places to enhance customer support ranges whereas decreasing our value to serve.
FedEx Freight is enacting a further furlough for sure job courses starting Could 28, 2023. Eligible staff might be supplied everlasting switch alternatives to different markets which have hiring wants. FedEx Freight will preserve well being advantages for furloughed staff. It is a non permanent workforce adjustment, and all furloughed staff might be recalled on or earlier than Aug. 25, 2023.
In early April, FedEx additionally introduced that it could consolidate FedEx Specific, FedEx Floor, FedEx Companies, and different FedEx working corporations into Federal Specific Company as a cost-cutting measure by June 2024. FedEx Freight is to function as a standalone firm below guardian firm Federal Specific Company.