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.