MEMPHIS, Tenn. — Memphis-based shipping company FedEx announced a temporary furlough for some employees in the company's freight division, just days after announcing they plan to eliminate more than 10% of its officer and director team positions.
In a statement, FedEx representatives said the company will furlough an unspecified number of employees for a three month period from March through May in order to better "align [their] workforce with operational requirements." The furlough will last from March 5 until May 27.
The company also said some FedEx Freight employees will be offered permanent transfer opportunities to other companies with hiring needs. According to the statement, FedEx Freight will maintain health benefits for furloughed employees in addition to providing other financial incentives.
FedEx did not specify which U.S. markets would be affected. However, a representative from FedEx told ABC24 Memphis in an email that the FedEx Express Memphis hub will not be affected, as furloughs are limited to FedEx Freight.
FedEx said they would monitor the situation for affected employees.
"The company will continue to evaluate the environment and bring back furloughed employees as business circumstances allow," representatives said in the statement.
FedEx is the latest company to announce significant job cuts and organizational changes. It joins companies like Amazon, Google, Spotify and Microsoft which each cut tens of thousands of jobs in January as the economic growth caused by the COVID-19 pandemic stilled.
You can read the full statement below:
In response to business conditions continuing to impact volumes, FedEx Freight is enacting another temporary furlough in some U.S. markets to align our workforce with operational requirements. Some eligible employees will be offered permanent transfer opportunities to other markets that have hiring needs. FedEx Freight will maintain health benefits and provide other financial incentives for furloughed employees. The company will continue to evaluate the environment and bring back furloughed employees as business circumstances allow.
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