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Memphis-based FedEx announces layoffs for 'small percentage' of IT and Finance workers

The company said it will work with those affected, but did not detail just how that would happen.
The FedEx logo is seen on a delivery truck as the driver makes his rounds Tuesday, June 21 2011, in Springfield, Ill. FedEx Corp. said Wednesday, June 22. (AP Photo/Seth Perlman)

MEMPHIS, Tenn — Memphis-based FedEx said it is laying off “a small percentage” of employees as it works to “streamline” functions amid a company reorganization.

The global shipping giant told ABC24 on Thursday, Sept. 14, 2023, workers in IT and Finance positions would be affected by the move. The company said it will work with those affected, but did not detail just how that would happen.

The following is the full statement from FedEx:

“As we continue responsible headcount management throughout our transformation to one FedEx, we have made the difficult decision to reduce a small percentage of IT and Finance positions as we streamline and realign functions. Decisions of this nature are never made lightly and are the result of much thought and consideration for the needs of our business. We are actively working with those affected by these changes to ensure they have the support they need during this transition.”

This all comes after FedEx announced in April it would combine almost all of its ground, air and other operations by next year as part of a $4 billion cost cutting plan.

The package delivery company said FedEx Express, FedEx Ground, FedEx Services and other FedEx operating companies would be rolled into a single entity by June 2024 in a companywide reorganization. FedEx Freight, the company's freight transportation services division, will continue as a stand-alone company within Federal Express Corp.

Back in February, FedEx announced a three-month furlough for some employees in the company's freight division, just days after announcing they would eliminate more than 10% of its officer and director team positions. The furlough ended in May.

FedEx said in September 2022 its operating expenses were rising and it was maneuvering to address those costs, including the closure of over 90 FedEx Office locations and five corporate offices. It also said it would defer on new hires and operate fewer flights.

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