Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Fedex to cut thousands from workforce
France24.com ^ | Oct. 10th 2012 | nonwe listed

Posted on 10/11/2012 4:26:03 AM PDT by Mad Dawgg

AFP - Fedex, the global delivery company, said Wednesday it was planning to cut "several thousand" people from its workforce via a voluntary departure program beginning early next year.

Company chairman Fred Smith said at an investment conference in Memphis, Tennessee, that the cuts would come in the company's Fedex Express global express delivery service, and in the US unit, Fedex Services.

(Excerpt) Read more at france24.com ...


TOPICS: Business/Economy; Front Page News
KEYWORDS: bhoeconomy; fedex; layoffs; obamanomics
FedEx cutting jobs to improve financial numbers by 2016 tells me things are not as rosy as Obama wants us to believe.
1 posted on 10/11/2012 4:26:08 AM PDT by Mad Dawgg
[ Post Reply | Private Reply | View Replies]

To: Mad Dawgg

This will help unemployment numbers go to under 4.0%!!! Huraaay!


2 posted on 10/11/2012 4:29:09 AM PDT by albie ("Work as if you were to live a hundred years. Pray as if you were to die tomorrow." Benjamin Frankli)
[ Post Reply | Private Reply | To 1 | View Replies]

To: albie

Lol


3 posted on 10/11/2012 4:32:56 AM PDT by uncitizen (Whistleblowers come forward NOW)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Mad Dawgg

“Those evil corporations are doing something corporate with their corporate mindset.” - old South Park episode


4 posted on 10/11/2012 4:37:55 AM PDT by Eleutheria5 (End the occupation. Annex today.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mad Dawgg

Wow Fred Smith is still CO?? One of my first jobs in 1980 was working for Fedex, but back then it was called the full name Federal Express. I remember he came to our branch one day and gave a speech and told us when he was trying to start the company he was short some money so he went to Vegas and won the extra cash LOL! Great guy and a great company. I remember when I left I was making something like $16 an hour and time and a half for OT and that was back in 1984 which was a fortune back then especially for a non-union job, but sadly it seems Obamanomics has put this company on the spot.


5 posted on 10/11/2012 4:40:55 AM PDT by GrandJediMasterYoda (Someday our schools we will teach the difference between "lose" and "loose")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mad Dawgg
And, advancements in technology won't help either. Given the growing acceptance of electronic messaging and signatures, all these express courier services will eventually go the way of the U.S. Postal Service. There are fewer and fewer reasons with each passing day to spend $15 in sending a one page hard copy document over night, when it can be done instantaneously for nothing. What remains is parcel delivery service. And, with more states proposing sales and Internet taxes on out of state purchases, that market will probably shrink as well.
6 posted on 10/11/2012 4:46:34 AM PDT by PowderMonkey (WILL WORK FOR AMMO)
[ Post Reply | Private Reply | To 1 | View Replies]

To: sickoflibs

well since UPS didnt build that, maybe bambam can shovel a couple billion into solar powered aircraft...wait, what ???


7 posted on 10/11/2012 4:48:47 AM PDT by Gilbo_3 (Gov is not reason; not eloquent; its force.Like fire,a dangerous servant & master. George Washington)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mad Dawgg

You can bet, even though it’s never mentioned, FedEx accountants have “run the numbers” on Obamacare.


8 posted on 10/11/2012 4:55:38 AM PDT by radioone ( Main Stream Media. The Government built that.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mad Dawgg

More of the obama economy. Of course hussein will claim to have saved several thousand jobs that FedEx didn’t cut. The workers that are cut well be unceremoniously dropped from accounting, and the unemployment percentage well be lowered. Not a joke, that’s how it goes down in obamaland.


9 posted on 10/11/2012 4:57:09 AM PDT by ThunderSleeps (Stop obama now! Stop the hussein - insane agenda!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PowderMonkey

Good analysis. Internet sales taxes are slowing becoming reality and will cut into the online bushiness models so will reduce deliveries by FedEx


10 posted on 10/11/2012 5:02:37 AM PDT by dennisw (Government be yo mamma - Re-elect Barack Obama)
[ Post Reply | Private Reply | To 6 | View Replies]

To: GrandJediMasterYoda

If it’s the Express side, It’s voluntary, meaning they will probably offer early retirement deals. They have done this before.


11 posted on 10/11/2012 5:17:38 AM PDT by HollyB
[ Post Reply | Private Reply | To 5 | View Replies]

To: Mad Dawgg
Terrible news. Even worse if O gets re-ordained.

OTOH, if Romney wins and truly exhibits his intent to get our economy with results in congress, we'll be seeing an astounding amount of new hiring by 2nd quarter next year.

12 posted on 10/11/2012 5:21:55 AM PDT by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mad Dawgg

No doubt the Oct. employment number will find that these ex-Fed-Ex workers have dropped out of the workforce. The percentage of unemployed will be down to 7:5% right before Election Day....another miracle courtesy of the BLS. (To be accurate, they should drop the “L”.)


13 posted on 10/11/2012 5:26:12 AM PDT by txrefugee
[ Post Reply | Private Reply | To 1 | View Replies]

To: Caipirabob
Even worse if O gets re-ordained...

The only way to be rid of this O-hole if it is re-ordained, will be if it abdicates.

14 posted on 10/11/2012 5:26:29 AM PDT by C210N ("ask not what the candidate can do for you, ask what you can do for the candidate" (Breitbart, 2012))
[ Post Reply | Private Reply | To 12 | View Replies]

To: GrandJediMasterYoda
This isn't the first massive voluntary cutback for FedEx. I don't think we can blame this one on Obama.
15 posted on 10/11/2012 5:27:37 AM PDT by Coldwater Creek (He who dwells in the shelter of the Most High will rest in the shadows of the Almighty Psalm 91:)
[ Post Reply | Private Reply | To 5 | View Replies]

To: dennisw

Also, aren’t Walmart and Amazon doing same day delivery now? Seeing as how those stores have their own businesses in every major city, it seems they can bypass freight alltogethor.


16 posted on 10/11/2012 5:30:49 AM PDT by IslamE (epiphany)
[ Post Reply | Private Reply | To 10 | View Replies]

To: IslamE

A lot of Amazon shipping is done by a delivery service that employs independent contractors who (I presume) own their own vehicles. I was outside the other day when one came by and gave me the package. His van was not FedEx or anything

So Amazon tries to cheap out by bypassing UPS, FedEx etc


17 posted on 10/11/2012 5:36:49 AM PDT by dennisw (Government be yo mamma - Re-elect Barack Obama)
[ Post Reply | Private Reply | To 16 | View Replies]

To: Mad Dawgg

The real problem is e mail

Yesterday I transmitted a large report via Fedex. I discovered it was the first such transmission in two years. Such transmissions were several a week years ago but now all is scanned and emailed. This report contained original documents that had to be saved.

The rise of e mail/scanner usage has saved my client very big bucks by eliminating physical (Fedex) transmittal.


18 posted on 10/11/2012 5:43:13 AM PDT by bert ((K.E. N.P. N.C. +12 ..... Present failure and impending death yield irrational action))
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mad Dawgg
This announcement, or at least *an* announcement, has been in the hopper for months. In fact, dating back to at least this past spring, something was going to be announced on October 9th (so the original "inside" reports were a day off). Speculation was it would be another early-retirement package, although the last time it was offered (early 2000s) more people took it than was anticipated.

The global economy has hurt FedEx, but so has Obama's mess. While there is still a need for original documents/original signatures, a good portion of the overnight document delivery service can now be handled via computer data transfers. Online purchases by consumers are down, which also means inventories don't have to be replenished as often. Another big bottom-line issue is the modal shift from overnight to deferred. People aren't paying the higher premium rates; instead, they can wait another day or two for it to get there later, and more cheaply. A good bit of the Express volume has moved to FedEx Ground, so FDX is still keeping some of the volume, but at a lower margin.

Another factor is FedEx self-funds their health insurance, which is administered by one of a few companies depending on one's state of residence. The administrative & cost nightmare that is Obamacare surely doesn't help the bottom line, either.

Fred Smith has generally been kind to Obama with his public comments. I wouldn't call him an O-bot, but some of his remarks have caused me to shake my head.

19 posted on 10/11/2012 5:58:02 AM PDT by mellow velo (Oxymorons: jumbo shrimp, rap music, liberal think-tank)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mad Dawgg

Anytime you want to know how the economy is doing, simply look at what FedEx, UPS and the cardboard industry looks like. They are great economic indicators.


20 posted on 10/11/2012 6:27:07 AM PDT by Wurlitzer (Nothing says "ignorance" like Islam!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: mellow velo

FedEx is currently contracted to move the post office’s overnight mail from city to city. That’s a not-small chunk of change - and Obama could screw them out of it.


21 posted on 10/11/2012 6:28:29 AM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
[ Post Reply | Private Reply | To 19 | View Replies]

To: Mad Dawgg
Thanks again, Obama. You have to GO, you're killing every business. Now all my new Fender© guitars and accessories from Sweetwater.com will take longer than the next day (and this is their std FREE shipping from FedEx!).

I'm not kidding. Last year I ordered a new Fender Blacktop Jaguar HH on Dec 23rd about 2:30pm, it came Dec 24th!. Made my Christmas!

The longest I've waited is two days with them and FedEx. When I ordered my new Fender Squier CV 50's Strat earlier this year(1). I asked my Sales Engineer to have their Techs double check the factory setup especially the intonation. That delayed shipping overnight.

(1) I wanted a 'knock around' Strat so I didn't have to get out my baby when the grandkids are around (Candy Apple Red 86' Fender Strat w/ Flyod Rose Tremolo). That happened once and 'somehow' it got knocked out of its stand. No damage, it fell on the carpet -- thankfully.

22 posted on 10/11/2012 6:31:11 AM PDT by Condor51 (Si vis pacem, para bellum.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Wurlitzer

-——the cardboard industry——

For many years, until recently, I visited a company that makes photosensitive plastic plates used to print cardboard boxes. They ship their products literally all over the world. They have a strong export business.

The number of my visits was tied to orders of several export customers.The number of unshipped pallets on the dock was an indicator of their current sales volume. As goes the box printing business so goes the world economy.


23 posted on 10/11/2012 6:35:30 AM PDT by bert ((K.E. N.P. N.C. +12 ..... Present failure and impending death yield irrational action))
[ Post Reply | Private Reply | To 20 | View Replies]

To: bert

“For many years, until recently, I visited a company that makes photosensitive plastic plates used to print cardboard boxes.”


Yes, you are correct that such a business would be sensitive to the state of the economy. They have however, had some of their sales eroded by businesses who no longer use pre-printed boxes but use wide format ink jet printers.

Again, you are correct, no sales, no product, no boxes, no printing = Obama’s “get even with them” economy.


24 posted on 10/11/2012 6:46:41 AM PDT by Wurlitzer (Nothing says "ignorance" like Islam!)
[ Post Reply | Private Reply | To 23 | View Replies]

To: bert

[I discovered it was the first such transmission in two years.]

Back in the dark ages, circa 1990, I worked in the document control department of a company that was coordinating the engineering and simulatneous construction of a half dozen coal fired co-generation power plants.

We sent big heavy packages of D size drawings to each site every night. Lots of business for Fedex.

Things have changed greatly since then.

Now pretty much my only contact with Fedex is when they deliver goodies I’ve ordered for my 4x4 and other toys from NAPA or whatever remote boneyard I can find what I need at.


25 posted on 10/11/2012 6:48:34 AM PDT by TArcher
[ Post Reply | Private Reply | To 18 | View Replies]

To: Mad Dawgg

Whoa mama!

A few months ago some investors were saying FedEx’s expected activity level indicated slowing growth in the next couple of quarters.

What does it mean when FedEx gets out the pink slips?


26 posted on 10/11/2012 6:53:48 AM PDT by Mr. Silverback (Reagan @ only 39/Mondale +5/Dukakis +17/McCain +3...panic is unwarranted. So is complacency.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TArcher

That is basically what I did and still have a small part of. I took a thumb drive to the inspection site and they loaded it with documents and reports.

It is amazing really the work that can be done so quickly when organizations a world apart get to know each other on a one to one basis and the e mails begin to fly.


27 posted on 10/11/2012 6:54:07 AM PDT by bert ((K.E. N.P. N.C. +12 ..... Present failure and impending death yield irrational action))
[ Post Reply | Private Reply | To 25 | View Replies]

To: PowderMonkey
"And, advancements in technology won't help either. Given the growing acceptance of electronic messaging and signatures, all these express courier services will eventually go the way of the U.S. Postal Service. "

"Hard-copy messaging" accounts for about 6% of FedEx total revenue

28 posted on 10/11/2012 6:55:03 AM PDT by cookcounty (Kagan and Sotomayor side with Joe Wilson: -------Obama DID lie!)
[ Post Reply | Private Reply | To 6 | View Replies]

To: mellow velo

Good analysis. Deferred shipping has really created a dynamic two tiered market. If you choose 4-8 day shipping v. next day or 2-day the savings is significant, but there is a significant benefit to the delivery company. Now they can segregate deliveries and if they have room to transport your deferred delivery you may get it in less than 4 days.

Their biggest cost is labor and the labor burden. If you can manage that effectively that’s where you’ll cut. This is the challenge of the 21st century. Millennials and frankly all of us are going to face an ever more competitive market. That means we’ll all slowly become entrepreneurs, self-employed or small jobbers working on contracts.

This will really change the labor market dynamics, our economy and our politics. Licensing and permitting keeps many people out of the workforce unnecessarily. Those states and localities that recognize this and liberalize their regulatory regimes will gain massively. People need to work to live.

If you can work anywhere you’ll see a move toward leasing and flexibility. That was the way things used to be with very flexible wages and prices. When a bust happened in the US it wasn’t as painful because although your wages fell X%, so did prices. We’ve lost that flexibility through government regulation and a pro-debt (read pro-bank) tax policy.

All this is set to change in the near future. If the choice is between a government handout, economic failure or a job the only sustainable choice is a job. The first two are what cause income inequality by creating an economically successful political class that manipulates the laws and thus the economy to their private benefit. That’s the case in the 3rd world where you find high poverty and entrenched oligarchies.


29 posted on 10/11/2012 6:58:58 AM PDT by 1010RD (First, Do No Harm)
[ Post Reply | Private Reply | To 19 | View Replies]

To: dennisw

Recently, in addition to the “regular” deliver services, I’ve been getting stuff by people in unmarked cars and the invoice said “A1 Courier” or something like that. Things seem to come quicker when they’re involved so I have no objections.


30 posted on 10/11/2012 7:03:02 AM PDT by PLMerite (Shut the Beyotch Down! Burn, baby, burn!)
[ Post Reply | Private Reply | To 17 | View Replies]

To: Mad Dawgg
They also come in the wake of the company's warnings that its business is being hit by the global economic slowdown.

FDX's earnings call was pretty dire in it's warning of a sharp slowdown of global economic growth. For those that don't know FDX has a full global economic forecasting unit and they are quite good at it.

31 posted on 10/11/2012 7:05:50 AM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mad Dawgg; mickie
Motorola, headquartered in Illinois, has just dumped 4000 employees into the unemployed of America in one swell foop....my nephew, 20 years-plus is one of them.

His whole office division was moved to Poland where Polish workers and a new building are up and running.

How about them apples, or should I say....peirogis?

Leni

32 posted on 10/11/2012 7:09:51 AM PDT by MinuteGal
[ Post Reply | Private Reply | To 1 | View Replies]

To: Spktyr
Yes, FedEx is still moving USPS product on their aircraft, but the contract to have FedEx dropboxes in front of post offices has expired and hasn't been renewed. The dropboxes are currently in the process of being removed from USPS sites, starting about a week or two ago.

The visibility of the FDX brand name & convenience of shipping will take a hit with that move, though the bottom line is probably that FedEx wasn't getting the volume from these dropboxes to make it financially feasible any longer.

33 posted on 10/11/2012 7:35:08 AM PDT by mellow velo (Oxymorons: jumbo shrimp, rap music, liberal think-tank)
[ Post Reply | Private Reply | To 21 | View Replies]

To: PowderMonkey

It’s a PITA and expensive to drive around looking for some item at the store vs. purchasing online. Even with sales tax
one saves time, hassle and gas.


34 posted on 10/11/2012 7:46:51 AM PDT by RitchieAprile (Gentle but bold...)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Mad Dawgg

Coming into the Christmas season?

That’s usually when UPS & Fedex hire extra people.


35 posted on 10/11/2012 7:52:42 AM PDT by ridesthemiles
[ Post Reply | Private Reply | To 1 | View Replies]

To: mellow velo

It was my understanding that the USPS contract wasn’t up until September 2013.


36 posted on 10/11/2012 8:05:07 AM PDT by railroader
[ Post Reply | Private Reply | To 33 | View Replies]

To: ridesthemiles

True, that’s not good, not good at all!


37 posted on 10/11/2012 8:09:12 AM PDT by IslamE (epiphany)
[ Post Reply | Private Reply | To 35 | View Replies]

To: Mad Dawgg

Because the economy is doing so well under 0bambi.


38 posted on 10/11/2012 8:16:09 AM PDT by Uncle Miltie (You didn't build that. The private sector is doing fine. We tried our plan and it worked.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: railroader

Two different & separate contracts.


39 posted on 10/11/2012 10:02:48 AM PDT by mellow velo (Oxymorons: jumbo shrimp, rap music, liberal think-tank)
[ Post Reply | Private Reply | To 36 | View Replies]

To: GrandJediMasterYoda

I gave them nearly 18 years of my life. One of the best companies. Though I didn’t agree with their management programs, I still loved the union-busting attitude of Fred Smith. I had a blast and am sad to hear of this news. - They are only as busy as the economy is busy. Go away B.Zero!!


40 posted on 10/11/2012 10:54:07 AM PDT by italyconservative (Come on November!)
[ Post Reply | Private Reply | To 5 | View Replies]

To: PLMerite
Recently, in addition to the “regular” deliver services, I’ve been getting stuff by people in unmarked cars and the invoice said “A1 Courier” or something like that. Things seem to come quicker when they’re involved so I have no objections.

That's the Amazon situation. My guess is Amazon is powerful enough to have FedEx and UPS ship to a city warehouse (say for Cleveland) where Amazon sorts the packages and has them delivered in Cleveland by Amazon's contactors... couriers/package delivery guys. Amazon also uses straight FedEx and UPS and USPS

Already you have the USPS partnering with FedEx and UPS to deliver packages. For example FedEx takes it half the way to Montana (say Chicago) then the USPS takes it the rest of the way and delivers it in a rural area where the USPS has better infrastructure

41 posted on 10/11/2012 11:15:12 AM PDT by dennisw (Government be yo mamma - Re-elect Barack Obama)
[ Post Reply | Private Reply | To 30 | View Replies]

To: HollyB
"If it’s the Express side, It’s voluntary, meaning they will probably offer early retirement deals. They have done this before."

Yup. Fred is very loyal to the Express side (aka the "air side" the original Federal division that built the company), and they have never had an involuntary lay-off in this group, though they have sometimes made it very attractive for people to voluntarily leave

---ex-FedExer, currently being paid every month to not die.

42 posted on 10/13/2012 8:15:34 AM PDT by cookcounty ("When I speak, I say what I mean and I mean what I say!" ---Joe Biden, 10/11/2012)
[ Post Reply | Private Reply | To 11 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson