Operator

Our next question today will come from Scott Group with Wolfe Research.

Scott Group -- Wolfe Research -- Analyst

Hey, thanks. Afternoon, guys. So, Fred, I want to ask, we've got record low margins, I think, here and I heard you talk about restricting hiring but why are we talking about more drastic cost and headcount reductions. I know it's may be different, but it strikes me that some of the rails are cutting headcount 10%, 15% without severance costs. Do we have any opportunity to do anything like that. And then, just separately, I know you talked about Express profits improving next year. Do you have any visibility on Ground profits for next year?

Frederick W. Smith -- Chairman and Chief Executive Officer

Well, I'll have to ask Alan if he is prepared to make a forecast for FY '21, but -- which I doubt because he hadn't forecasted to me if he had, but the reality is, to your first question, the rails are not even a remotely comparable business to FedEx. It's essentially a business of maintaining tracks and automating to the extent possible, you have an OR of 60%. It's not labor-intensive. It's getting less labor-intensive than when you follow the precepts of Hunter Harrison and smart railroading or whatever [Indecipherable] calling, that's what's allowing the precision railroading. That's what's allowing the rails to lower their cost. They are quasi-monopolies, certainly in the geographic areas and certainly to particular customers. So, I don't know that rail is significant.

The second part about this business is, we are, in many ways, spoke to our customers for long-term relationships and if you walk away from customers and disadvantage them and if you break the morale of your troops by not investing in service quality that has long-term deleterious effects. That certainly has been a consideration in Europe for mentioning in TNT.

So, of course, we could have done some more drastic things, but I think at the end of the day, the focus on the short-term financial results are only based on what we see for the fourth quarter into '21 and the strategies we're exercising. We have not decided to go down that road. Now, maybe, somebody else feels differently about that, but I don't think you can keep the purple promise laying all thousands of people and I think that's one of the considerations again we've had in Europe is to make sure that people over there we acquired with TNT were fairly treated. We're invested in delivering that kind of FedEx service.