FedEx Freight announces additional furloughs

Corinne S Kennedy, Memphis Commercial Appeal
·2 min read

FedEx Freight will furlough additional workers, the company confirmed Friday, a continuation of several months of cost-cutting measures by the logistics giant.

"In response to business conditions continuing to impact volumes, FedEx Freight is enacting another temporary furlough in some U.S. markets to align our workforce with operational requirements," the company said.

Some employees will be offered the opportunity to transfer to other markets and the furloughed employees will maintain health benefits and be provided other financial incentives, the company said. While the company did not say how many will be furloughed, it said the furlough period is "just under 90 days."

A FedEx Freight Direct employee unloads a large package onto a driveway in a residential neighborhood.
A FedEx Freight Direct employee unloads a large package onto a driveway in a residential neighborhood.

"The company will continue to evaluate the environment and bring back furloughed employees as business circumstances allow," the company said in a statement.

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The move comes on the heels of a Wednesday announcement the company would be cutting its officer and director team by more than 10%.

FedEx Freight had announced an initial round of furloughs in November due to slowing demand. The company also did not specify the number of workers impacted by that wave of furloughs.

Following a disappointing start to Fiscal Year 2023, FedEx in September announced plans to cut more than $2 billion across all divisions. In a second quarter earnings call, executives said the company was looking to cut an additional $1 billion.

All of the cuts have come amid a sustained drop in demand, which has been coupled with high operating costs.

“The FedEx team moved with urgency to make rapid progress on our ongoing transformation while navigating a weaker demand environment,” said FedEx President and CEO Raj Subramaniam on the second-quarter earnings call.

This article originally appeared on Memphis Commercial Appeal: FedEx Freight announces additional furloughs amid demand drop