24 Februari 2013

[240213.ID.LOG] FedEx Reportedly Cuts 20 VPs And MDs As Air Gives Way To Ground


FEDEX voluntary redundancy programme has reportedly accounted for 10 per cent of the company's senior management, and that over 20 vice-presidents and managing directors will be leaving the company.

While this has not been confirmed by FedEx, the move is said to be part of a cost reduction plan announced in October to achieve an "annual profitability improvement of US$1.7 billion in three years, with a big portion achieved in 2015.

Bloomberg said redundancies come because of a shift from air freight to sea and road transport by major shippers, resulting in as many as 5,000leaving FedEx in the next 18 months.

Job losses are said to hit FedEx Express and FedEx Services and were in addition to further cost cutting at FedEx Freight and FedEx Ground, reported the UK's Transport Intelligence.

Bloomberg quoted a FedEx spokesman who said it was a move to a new organisational structure, but would not confirm the number of jobs to be lost, adding that offers of more voluntary redundancies are expected this month.

FedEx's founder and CEO Fred Smith said in October that the cost reduction strategy was "closely tied to effective yield management. With slow economic growth the cost reduction is essential to achieve our financial goals".

Source : HKSG.

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