Make us your home page
Instagram

FedEx will offer buyouts to workers

NEW YORK — FedEx will soon begin offering buyouts to U.S. employees in an effort to cut costs in the face of a weakening global economy.

The world's second-largest package delivery company hinted at cutbacks earlier this summer when it said that slowing economic growth would crimp its earnings well into next year. It has already removed some aircraft from its fleet of more than 600 to account for a loss of demand.

While FedEx hasn't decided how many positions will be eliminated, it will probably focus on slow-growth areas such as its Express and Services units.

Express is where FedEx got its start in 1971, and it's still the company's biggest segment by far. The speedy shipping division, which moves 3.5 million packages on an average day, has been hit hard as people shift to slower delivery methods to conserve cash. The unit is also being dragged down by slowing Asian growth and a reduction in demand for Asian goods from the United States and Europe. The unit reported revenue of $26.5 billion in the latest fiscal year and has more than 146,000 employees worldwide — 102,000 of those in the United States.

Services is FedEx's behind-the-scenes logistics division, but it also includes FedEx Office, formerly Kinko's. It was formed in 2000 and, with annual revenue of $1.7 billion in 2012, is one of FedEx's smallest units. It has 13,000 employees, all of them based in the United States.

FedEx said employees who are close to retirement are also eligible for buyouts.

When it reported its fiscal fourth-quarter earnings in June, FedEx vowed significant cost cuts to offset any drop in shipments. Its forecast for the first-quarter, which ends this month, fell well below Wall Street expectations.

And second-quarter results released in late July by larger rival United Parcel Service suggested that the global economic slowdown may be even worse than FedEx had anticipated.

UPS lowered its forecast for all of 2012 and said its third-quarter earnings will fall below last year's results, with many customers fearing what's in store for the second half of the year.

UPS also said it's making cuts to make up for the shortfall.

Google to cut 4,000 at Motorola

Google is making its largest round of layoffs ever, announcing plans to cut about 4,000 jobs at Motorola Mobility just three months after buying the struggling cellphone pioneer. The move isn't surprising, given years of plummeting sales at Motorola, but it signals that Google doesn't intend to drag Motorola along as a money-losing venture. The reductions represent about 20 percent of Motorola Mobility's 20,000 employees and 7 percent of Google's overall workforce. Google says two-thirds of the job cuts will take place outside the United States.

FedEx will offer buyouts to workers 08/13/12 [Last modified: Monday, August 13, 2012 11:36pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Associated Press.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. Home of Tampa Bay Lightning GM Steve Yzerman hits market at $3.45 million

    Real Estate

    TAMPA — The Davis Islands home of Tampa Bay Lightning General Manager Steve Yzerman is back on the market for $3.45 million after a brief hiatus.

    The Davis Islands home of Tampa Bay Lightning General Manager Steve Yzerman is on the market for $3.45 million. [Courtesy of Hi Res Media]
  2. Trigaux: Halfway through 2017, a closer look at six drivers of the Tampa Bay economy

    Business

    We're nearly halfway through 2017 already, a perfect time to step back from the daily grind of business and ask: How's Tampa Bay's economy doing?

    Is there one theme or idea that captures the Tampa Bay brand? Not really but here's one possibility. The fun-loving annual Gasparilla "Invasion" of Tampa is captured in this photo of 
The Jose Gasparilla loaded with pirates of Ye Mystic Krewe of Gasparilla on its way this past January to the Tampa Convention Center. In the future a vibrant downtown Tampa or St. Petersburg may be the better theme. [CHRIS URSO   |   Times]
  3. Will new laws protect condo owners from apartment conversions and rogue associations?

    Real Estate

    Danny Di Nicolantonio has lived in St. Petersburg's Calais Village Condominums for 33 years. Annoyed at times by the actions, or inaction, of the condo board and property managers, he has complained to the state agency that is supposed to investigate.

    That has left him even more annoyed.

    A bill passed by the Florida Legislature would affect places like The Slade in Tampa's Channelside district, where cCondominium owners have battled a plan to convert homes into apartments.
[Times file photo]
  4. Walmart opens first Pinellas County in-house training academy

    Retail

    Seminole — It had all the hallmarks of a typical graduation: robe-clad graduates marching in to Pomp and Circumstance, friends and family packed together under a sweltering tent and a lineup of speakers encouraging the graduates to take charge of their future.

    New Walmart Academy graduates are congratulated Thursday morning by associates during a graduation ceremony at the Walmart store, 10237 Bay Pines Boulevard, St. Petersburg. The Walmart location is one of the company's training academies where managers complete a one week retail course. David Shultz and Richard Sheehan, both from St. Petersburg, get high fives from the crowd.
[SCOTT KEELER   |   Times]

  5. Lawsuit: Florida contractor fakes death to dodge angry homeowners

    Human Interest

    SEMINOLE — For weeks, Glenn Holland, 67, crawled out of bed before the sun rose to look for a dead man.

    Last year Glenn and Judith Holland said they paid a contractor thousands of dollars to renovate their future retirement home in Seminole. But when they tried to move in on Dec. 14, they said the home was in shambles and uninhabitable. They sent a text message to contractor Marc Anthony Perez at 12:36 p.m. looking for answers. Fourteen minutes later, they got back this text: "This is Marc's daughter, dad passed away on the 7th of December in a car accident. Sorry." Turns out Perez was still alive. Now the Hollands are suing him in Pinellas-Pasco circuit court. [LARA CERRI   |   Times]