FedEx’s underperforming Express division is to bear the brunt of a three-year R19.33-billion economy drive the Memphis-based operator is implementing across its business in a bid to improve profitability, reports Lloyds Loading List. It includes shedding jobs, disposing of aircraft and under-used assets and slimming-down its network. Almost 90% of the cost-cutting efforts will focus on FedEx Express, by far the group’s biggest division, which has been hit hard by a dip in volumes in the economic slowdown and a growing preference on the part of shippers to shift more and more of their goods from air to cheaper transport modes. Another negative factor has been the rising prices of jet fuel.
Express unit to bear the brunt of FedEx multi-billion economy drive
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