FedEx Freight Unit Furloughs Workers as Cargo Demand Slows

FedEx Freight Unit Furloughs Staff as Cargo Demand Slows


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FedEx Corp.’s freight unit is placing staff on furlough in some U.S. markets, including to mounting proof of a cargo slowdown as the corporate joins different giant employers trimming their ranks.

The furloughed staff will proceed to obtain well being advantages, the courier mentioned Nov. 14 in an emailed assertion. A number of the affected staff can be supplied everlasting transfers to areas which are nonetheless hiring.

“The corporate will proceed to guage the surroundings and produce again furloughed staff as enterprise circumstances enable,” FedEx mentioned within the assertion. It didn’t specify what number of staff can be affected within the freight enterprise, which hauls less-than-truckload cargo for retail and industrial prospects and is the corporate’s third-largest unit.

Host Seth Clevenger delves into the TT High 50 World Freight Firms checklist, and the way they’re making ready for an unsure future. Tune in above or by going to RoadSigns.ttnews.com.

The transfer comes after FedEx mentioned final week it’s chopping cargo flights and parking planes because the airfreight market declines. Many corporations in third-quarter earnings cited a slowdown of demand because the Federal Reserve continues to spice up rates of interest to chill inflation. C.H. Robinson Worldwide Inc., mentioned it can minimize prices by $175 million to deal with a downturn in 2023.

The workers reductions aren’t restricted to freight corporations. On-line retail large Amazon.com Inc. is making ready to chop about 10,000 positions starting as quickly as this week.

FedEx shares fell lower than 1% in New York. The inventory has declined 32% this 12 months.

FedEx Corp. ranks No. 2 on the Transport Subjects High 100 checklist of the biggest for-hire carriers in North America and the Transport Subjects High 50 checklist of the biggest international freight corporations. C.H. Robinson ranks No. 1 on the TT 100 checklist of the highest logistics corporations. Amazon ranks No. 19 on the TT 100 checklist of the highest personal carriers.

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