FedEx cuts profit targets, starts voluntary buyout programme

FedEx announced yesterday that it was starting a voluntary buyout programme for some of its US workers after it cut profit targets for the current fiscal year.

The company has faced challenges in Europe—including Brexit uncertainty, French protests, and a rocky path following their acquisition of TNT Express—as well as tariff and trade disputes in Asia, likely as a result of Trump’s ongoing trade war.

“The peak for global economic growth now appears to be behind us,” said Chief Marketing Officer Raj Subramaniam.

Through its buyout programme, targeted mainly at FedEx Express employees, FedEx is offering four weeks of pay for every year of service, up to a maximum of two years of pay, as well as healthcare funding. The programme is estimated to cost between $450 million and $575 million, depending on how many employees take the offer.

At the end of the month, FedEx is replacing its current Express head, David Cunningham, with Subramaniam.

Source: Wall Street Journal