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Old 02-23-2009, 10:07 PM
 
16 posts, read 69,552 times
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Default Fedex Layoff next month???

Heard a rumor today, Fedex is going to layoff 10-20% percent of its corporate employees next month after the earning report. This could be bad to Memphis area, which is already miserable

Anyboday knows more detail
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Old 02-24-2009, 07:28 AM
 
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This was on the news a couple weeks ago. At first they did the salary decrease hoping to not have to lay people off, but now they have decided they will need to let people go after all. Not sure of the details. I'm sure you can find it online. They did not say they were letting go people in Memphis, just overall, in an unknown capacity. It did not specify corporate employees on the news at least.
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Old 02-24-2009, 08:53 AM
 
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That would be intereresting - in all it's history fedex has never had an involuntary layoff (or so I was told).
They have lots of temp and 3rd party employees so maybe that impacts them only, combined with employee (voluntary) buy-outs.
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Old 02-24-2009, 11:49 AM
 
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I seem to recall hearing that Fred Smith included himself among those taking a pay cut.

That struck me as being an honorable thing to do.

And, I won't try to turn this into an economic discussion, but what all is going on seems so unnecessary.
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Old 02-24-2009, 01:21 PM
 
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Yes, I remember he took a pay cut too, when the first pay cuts were announced.

I distinctly remember reading that the lay-offs could be anyone - truck drivers, Kinko/FedEx store employees, corporate people, etc. Things may have changed after that however, I have not kept up with it.
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Old 02-24-2009, 09:11 PM
 
16 posts, read 69,552 times
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Quote:
Originally Posted by Dd714 View Post
That would be intereresting - in all it's history fedex has never had an involuntary layoff (or so I was told).
They have lots of temp and 3rd party employees so maybe that impacts them only, combined with employee (voluntary) buy-outs.
Just googled it, it seems Fedex did have massive layoff before, is this true or not?

FedEx to Trim Up to 14,000 Jobs


By WOODY BAIRD
The Associated Press
Monday, June 2, 2003; 9:55 PM


MEMPHIS, Tenn. - FedEx Corp. announced plans Monday to trim up to 14,000 jobs from its domestic express service by offering voluntary severance packages and early retirement in an attempt to cut long-term costs.

With 116,000 workers nationwide, FedEx Express has the world's biggest cargo airline and is the largest operating unit of FedEx Corp., which also owns FedEx Ground and FedEx Freight.

To achieve the job reduction, the company said it would offer early retirement and voluntary severance programs to about 14,000 management and salaried employees across the United States - about 12 percent of the unit's work force.

The company expects the new job reductions to produce annual operating savings of $150 million to $190 million by 2005.

Domestically, the company ships about 2.8 million express packages daily, which is down by 200,000 packages a day from three years ago. International express and ground shipments have continued to increase
over the past several fiscal quarters.

While FedEx Express has cut back hiring over the past two years, the incentive programs are the company's largest attempts to date for reducing its staff, said company spokesman Jess Bunn.

The idea is to "align costs at FedEx Express with revenues," Bunn said. "This the latest initiative in a series aimed at controlling the costs at Express."

FedEx said it expects significant increases in pension and health care costs in the 2004 fiscal year, which began June 1.

"Depending on employee acceptance rates, the pretax charge for these programs is estimated to be in the range of $230 million to $290 million in fiscal 2004, with most of the charge to be incurred in the first half of the fiscal year," the company said.

The company said it expects earnings for the year of $3 to $3.15 per share, excluding the cost of the early retirement and severance programs. With those programs, earnings for the year could decrease 25 cents to 30 cents a share, the company said.

Wall Street analysts surveyed by Thompson First Call had projected the company would earn $3.19 a share for the year.

Shares of FedEx closed at $64.61, up 63 cents, Monday on the New York Stock Exchange. The buyout program was announced after the market closed.

The early retirement program will be available to employees who are 50 or older and have been with the company at least five years. Salaried employees are eligible for severance packages regardless of age or time
with the company.

Jeffery Pittsburg of Pittsburg Research Inc. said the move is a prudent way for FedEx Express to reduce staff with a one-time restructuring charge.

"You're giving everybody an opportunity to cut back, but at the same time, you're doing it in a nice way," Pittsburg said.

The job cuts will not affect flight crews or workers who come in direct contact with FedEx Express customers, such as couriers and customer service agents.

Employees have until Sept. 30 to decide on taking early retirement while those wanting voluntary severance pay have until Nov. 24 to make up their minds.

"These voluntary incentives will be offered on a one-time only basis," the company said.

Last edited by fedexforum; 02-24-2009 at 09:24 PM..
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Old 02-25-2009, 07:24 AM
 
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The 2003 plan was the way a company should do it - voluntary, 4 months to decide and find a new job if you choose. Works out for everyone and it looks like the employees got a generous buy-out (avg $21k each).
Hopefully they will do the right thing this time as well.
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Old 02-25-2009, 08:55 AM
 
Location: Collierville, TN
724 posts, read 1,384,925 times
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Fred Smith not only took a pay cut, but also is not taking a bonus, --all executives took a 5-20% pay cut and no bonus. So, realistically, although the pay cut may be relatively small, the bonus going away gives everyone about 30-50% less to live on. Pilots are taking big cuts as well. The good news is, they still work for a great company, they still have a job, and if they planned right (you should never count on your bonus as guaranteed), they should be able to pay their bills.
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Old 02-26-2009, 03:43 PM
 
93 posts, read 213,549 times
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I also read that FedEx stopped contributing to the companies 401K plan...True?

That said, I know FedEx will do the right thing as they always have in the past. In these economic times companies are doing all they can do just to maintain a profitability so it's understandable. I just hope all works out well with the FedEx layoffs and anyone else that's got that proverbial threat of lay off over their head.
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Old 02-26-2009, 04:04 PM
 
Location: Collierville, TN
724 posts, read 1,384,925 times
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Quote:
Originally Posted by hawkster View Post
I also read that FedEx stopped contributing to the companies 401K plan...True?
True! I forgot that part.
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