FedEx To Offer US Staff Voluntary Buyouts In Cost-Cutting Move

on August 13 2012 9:06 AM

FedEx Corporation (NYSE: FDX) said Monday it will offer voluntary buyout incentives to certain U.S.-based employees as part of an ongoing cost cutting.

The world's second-largest package delivery company will focus on employees in its Express and Services units.

Shares of FedEx Corporation (NYSE: FDX) closed at $87.80 on Friday.

The Memphis, Tenn.-based company didn't specify how many staff are affected. Those that are close to retirement are also eligible for buyouts. Details will be announced no later than the fourth quarter of fiscal year 2013.

FedEx employs about 300,000 worldwide, and about 115,000 combined at the two businesses affected, it said.

FedEx said it will provide more information on its plans at its Investors and Lenders Meeting in Memphis on Oct. 9 and 10.

In June, FedEx warned about the global slowdown and outlined plans for further cuts as it reported a drop in fiscal fourth-quarter profit. FedEx earned $550 million, or $1.73 a share, compared with $558 million, or $1.75 a share, a year earlier. Revenue rose to $11 billion from $10.55 billion a year earlier. FedEx's forecast for the first quarter, which ends this month, fell well below Wall Street's expectations.