The fourth round of FedEx Freight furloughs will begin May 28 “for certain job classes." FedEx did not specify what jobs classes they were.įedEx said eligible employees will be offered “permanent transfer opportunities to other markets that have hiring needs” and that furloughed employees will maintain health benefits. ![]() Maybe now you can see why that minor Ground package acceptance policy at Express drop boxes matters.FedEx leadership: FedEx's Udo Lange on new role, working with Richard Smith and company's cultureįedEx consolidation: What are the risks and rewards of new restructuring plan? What we know about FedEx Freight's latest round of furloughs Is it impossible to merge the two separate Ground and Express companies due to the debilitating disruption that such a merger would cause for the customer, Express employees and low-cost, Ground contractor model? Can FedEx ever operate as efficiently as UPS and drive meaningful profit gains with two separate and distinct, Ground and Express operating companies in the US?Ģ. FedEx has never acknowledged that the dual, Ground and Express, op-co model is not efficient. There are two very real issues/questions in play here:ġ. Recently, FedEx has been under intense pressure from the Wallstreet analyst community as they have been missing EPS/profit targets and blaming this poor performance mostly on a slowing, global economy. As evidence of this, even though FedEx has significantly lower employee costs than UPS, they are consistently less profitable than their primary competitor. It is also a bit cumbersome for the customer, and this applies to both shippers and recipients, to have separate Ground and Express pick-ups and deliveries. You don’t have to be a Harvard Business School MBA to understand why this condition matters, as operating two separate companies to pick-up and deliver Ground and Express packages is not efficient.
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