FedEx to cut jobs nationwide

FedEx Corp. announced it would cut an unspecified number of jobs nationwide as a result of cost-cutting measures to deal with the tough economy. In its third-quarter earnings release, announced March 19, Memphis, Tenn.-based FedEx (NYSE: FDX) said it would also reduce network capacity at both FedEx Express and FedEx Freight divisions and enact a "further reduction of personnel and work hours." Other cost-cutting programs include additional reductions in other spending categories, streamlining of information technology systems and expansion of previously announced pay actions to include non-U.S. employees in some cases. "Our financial performance was sharply lower during the quarter due to the global recession," said Frederick Smith, FedEx Corp. chairman, president and chief executive officer. "While we are gaining market share in all of our transportation segments, the downturn in our industry and the severity and expected duration of the recession require that we take additional actions." The cost-reduction actions are expected to result in fourth-quarter charges of approximately $100 million and to reduce expenses by approximately $1 billion. "Our goal when we implemented compensation reductions in January for U.S. salaried personnel was to both protect our business and minimize the loss of jobs," said Smith. "With industrial production and global trade trends worsening since last quarter, we are applying these additional measures to continue to secure as many of our jobs as possible during this downturn. We remain focused on providing outstanding service, and will ensure that our actions do not impede our industry-leading customer experience." In its third quarter, FedEx reported net income of $97 million, down 75 percent from $393 for the same quarter last year. Sales came in at $182 million, down 72 percent from the comparable period in 2007. FedEx employs more than 300 workers at a facility in Huber Heights.