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?