FedEx ready with cost-cutting measures

No layoffs and no draconian steps, says chief executive Fred Smith


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FedEx has planned cost-cutting measures for its express operations that will not see laying off staff. FedEx chief executive Fred Smith clarified during a recent conference call that “we’re not going to lay off people and we’re not going to take some draconian steps”. The details will be released after the October 10 investor meeting in Memphis.

FedEx recently lowered its fiscal 2013 forecast with earnings going down as much as 6 per cent for the year due to the weakening economy that is pushing customers to become more cost conscious and move to lower-priced options like ocean transport.