FedEX downsizes despite overall profits

[jertheber]

Questioning the wisdom of corporate directives that are relevant to cost cutting measures is a total waste of time. Most american companies are now facing the consequences of their earlier actions in the eighties and nineties when they would have considered a truly efficient company as one with zero employees. The entire construct of consumer/worker economies is now crumbling world wide for the lack of revenue growth that corporations have come to depend on. Put simply, they are running low on customers, that's the downside of all that efficiency that called for the reduction of the workforce. Less workers/consumers can't be good for the long term profit picture, we are simply seeing the scrambling in most companies to somehow rectify their operating cost with that new reality.

Profit for some of the biggest corporations is now reliant on their ability to rescue the bottom line by dumping entire divisions and the selling of those assets that were put in place to accommodate the expected non stop growth of revenue that characterized the go go economy of the past. Business strategies of the recent past have shown themselves to be a mostly one sided affair, cut cost, raise shareholder value, cut more cost and get more for the shareholders, of course this thinking included the notion that employees were expendable but not customers. Too bad they didn't realize that customers need jobs in order to be a continuing customer. This is all part of the dilemma of our capitalistic construct, it works great for awhile, but, in the end it's a self devouring system simply because it has no place for the human element, I don't see a change coming, but that light at the tunnels end could very well be the train of past corporate decisions bearing down on us all.

[JazzyTallGuy]

Originally Posted by lifelongMOgal

Last I checked this is a free country and anyone can be an "investor".

Damn we finally agree on something!

Wonders never cease!

The beauty of America is that the financial markets are open to all with the resources and willingness to take the risk.

The people who are rewarded the most in a capitalist system are those willing to risk money and can successfully manage business ventures. I have no complaints with that.

We just live in a time where it makes more sense to package market your skills to an corporation in exchange for mutually agreed upon compesnation and/or invest your money in the financial markets, than it is to go to work as an employee.

[rikensquire]

This is where things began, so it only makes sense that this is where things are leading.


Part of the issue of employment right now, hinges on what the effects of the New Health Care plan the government will be deploying over the next few years. The larger companies have lawyers and accountants in defense mode, attempting to limit the potential risks that employing wokers could possible contain. Because much of the details involved in the mandate of coverage is as muddied as the efforts to actually read what we were signed up for, as a country, piling on existing employees or even reducing the number of employees has become the "safe choice. I doubt Fed Ex will be an oddity once companies come clean on their taxes at the end of this year. Our government is eyeing the 1 trillion companies are known to be sitting on in fear/preparation of exactly how government will be applying it's best efforts to "help" the system out. When Republicans can run on just about "nothing" and win elections, that means "nothing" looks pretty good to the masses.

[jertheber]

Originally Posted by sanrene

How many times must this be repeated - business AND individuals are bracing for obama's tax hikes - from the HC bill, from the expiration of bush tax cuts and from a bevy of other legislation/regulation that will hurt the economy.

Did you think his anti-business rhetoric and attacks on private sectors of the economy would go unnoticed?

How many time must it be repeated that Obama gave away the US treasury to, that's right......Business. Bankers are in business, GM is a business, AIG is a business, financing the weapons of war is business, who did you think got the lions share of our collective wealth if it wasn't business? Sheeesh, this guy is anything but anti business, he's been bought and paid for by business, just like all the rest of our illustrious public servants.........

[Guamanians]

I worked for FedEX, and they seem to be a solid, respectable, and profitable company. I'm sure that they weighed the options, and felt that they had to downsize. It looks like a business move
FedEx has been profitable, and continued to advance despite obstacles (higher gas prices, bad economy,etc)
Check into the companies track record, and you will see that they have been exceptionally solid for awhile. It sucks that people are losing their jobs, but FedEx has the right to run their business.

[Avengerfire]

I know of many people who have lost their jobs at FedEx in the two years as the company sheds jobs in advance of the implementation of ObamaCare and its effects.

[Kirdik]

You don't need a job at FedEx when you have Obamacare and extended unemployment benefits.