FedEx to Lay Off 1,000
Though known for not laying off employees, FedEx is expected to begin cutting thousands of jobs.
WASHINGTON -- FedEx will lay off about 1,000 people beginning Friday.
The company said it was laying off approximately 1,000 salaried employees worldwide, including 500 in the greater Memphis area, which is the company's headquarters.
The company has a reputation for not laying people off, but its income is down 75 percent in one year and it plans to cut $1 billion in fiscal 2010.
Three months ago, the company's CEO was quoted as saying "FedEx is a barometer of the world economy."
The company cited several reasons for the layoffs:
- Global economic conditions have worsened more than anticipated and the pace and severity of this downturn is unprecedented in the company’s history.
- Its volumes and key business indicators have dropped more than expected.
- They must adjust the size of the organization to reflect volume drops and changes in future business plans.
- This action balances the company’s current challenges with its ability to achieve long-term success.