Soyathink

FedEx Corp. First Quarter Earnings Surge - Yahoo! Finance

Good job to Fed Ex especially Express. It appears that Wall Street was looking for more since shares are trading down in pre trading.

Fed Ex is cutting 1700 full time jobs and closing 100 centers in the freight segment.

"Additionally, it will provide customers a choice of priority or economy less-than-truckload (LTL) freight services across all lengths of haul from one integrated company. This change, along with the company’s ongoing yield management initiatives, is expected to substantially improve the profitability of the FedEx Freight segment in fiscal 2012."

FedEx Just Came Up With A Clever Excuse For Laying Off Workers - Yahoo! Finance

We just noted that FedEx came out with earnings that were a bit on the weak side, and that they are laying off 1700 workers.


Let's return to those layoffs real quick.


See, as we've been pointing out, the big M&A boom is in significant part, a scheme to have an excuse to create "synergies" i.e. layoffs.


But what do you do when you don't have anyone to merge with?


You create a merger inside your own company:

"FedEx will combine its FedEx Freight and FedEx National LTL operations effective January 30, 2011. This action will increase efficiencies and reduce operational costs. Additionally, it will provide customers a choice of priority or economy less-than-truckload (LTL) freight services across all lengths of haul from one integrated company. This change, along with the company’s ongoing yield management initiatives, is expected to substantially improve the profitability of the FedEx Freight segment in fiscal 2012."


Internal M&A! And you don't even need to pay bankers!



Could the same thing be coming with ground and express drivers later on to improve profit? " from one integrated company" From that wording it would appear on its way.

FDX Freight employees were pretty fired up about bringing in the Teamsters into the freight unit if this happened. Right now they are non union and just lost 1700 full time jobs.

Why does FED EX which just doubled its profit need to put 1700 full time workers on the street?

Busdrivr

Thanks for the compliments Soya.
We at FedEx really appreciate your interest in us and your praise.

bleedairpacks

Is that photo really you soyathink?

TurnAndBurn

Please stick to posting your unwaivering support of that other company... you don't work for.

Thanks

golfandfly

Soya,

Great one day play on Fdx stock.

Soyathink

It actually was. Thank you. I dumped all my FDX before close yesterday because I heard of the 1700 layoffs and managment saying slower growth out of Asia. I might buy it back at mid day or before close today. I made some good money on the shares I bought late monday and sold yesterday.

"But CEO Fred Smith said he expects the pace of the world's economic recovery to slow in the months ahead."

"We expect a phase of somewhat slower economic growth going forward," Smith told analysts on a conference call.

Soyathink

Sure I'll get right on that. 1700 jobs full time jobs cut by Fed Ex when profit doubled.

Soyathink

Yes How is Wilson doing?

golfandfly

Right... I see you got smart 18 minutes before the close and dumped your shares. All the while you were posting nonsense on a pilot's message board.

I'm sure your substantial holdings of UPS amount to about 2 dollars.....

If FDX went up 4% today, I'm sure you would be patting yourself on the back for the good call. And, also wise man, Wall Street loves efficiency and lowered payrolls. Fedex lost today primarily for negative comments about the economy and very slow growth...

Soyathink

Power of technology . I was in line picking up the kids at school too at that same time.

We'll see tomorrow and next week how it goes. I just bought it back 20 minutes ago. I bought it at $82.61

Your right about my UPS stock. 38 years of getting it and only selling once to purchase my house and put some in the kids names for a trust and college. Did I mention tripling the value in the IPO? So your $2.00 is now $6.00

I love how you guys can only comeback with insults or innuendos.

It's only an internet message board fellas, lighten up.