FedEx to Offer Employee Buyouts to Cut Costs

FedEx to Offer Employee Buyouts to Cut Costs

FedEx plans to offer a buyout to about 1,000 of its employees, all in effort to cut costs and improve profits.
MEMPHIS, TN (abc24.com) - FedEx plans to offer a buyout to about 1,000 of its employees, all in effort to cut costs and improve profits. ABC24 News obtained details about the FedEx voluntary buyout program. Next Friday, February 15, FedEx employees will know who qualifies. So far, employees say the buyout is a "good deal" especially for those who are ready to retire.

People, service, profit: that's been FedEx operating philosophy for decades. Employees say it's true people come first when it comes to the company's voluntary buyout program.

"Yeah, it is a good deal. I mean it's better than any other company I’ve heard of,” said FedEx employee Rick Meserve.

"If a person has been here for a long time and if the package is good then they will consider it," said another FedEx employee Bili Yang.

According to employees, the package is a pretty good deal. Here's how the buyout program will work: if you've worked for FedEx for at least 5 years you automatically qualify. Part-time employees are eligible too. Employees will get paid 4 weeks salary for every year they worked.

For example, if you've been working for 20 years and earn $1,200 a week, you would end up with $96,000.

On top of that, we’re told employees can get up to $25,000 in healthcare benefits if they don't qualify for Medicare yet. Employees say this is a really good deal.

"I'm an old guy, I would retire. I'm going to travel and stuff. There are a lot of people that would consider it. Primarily it'll be of interest for people of retirement age,” said FedEx employee Dave Eizinger. “Nothing is in concrete yet. Until something is presented to me I'm sure I'll jump all over it."

The maximum payout is capped at 26 years of service. Employees that qualify will sign the buyout agreement in April. The first wave of employees will be let go by the end of May.
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