FedEx to Combine Air, Ground & Other Operations by Mid-2024 - Modern Distribution Management

Log In

FedEx to Combine Air, Ground & Other Operations by Mid-2024

The consolidation of operations is expected to save FedEx $4 billion.
Memphis, Tennessee-based global shipping company FedEx said Sept. 15 it plans to cut costs, reduce operations and freeze hiring following a worse-than-expected earnings report that projects revenue shortfalls in the hundreds of millions of dollars.
Author
Date

FedEx announced April 5 that it will consolidate almost all of its ground, air and other operations by next year as part of a plan to save $4 billion.

The cost-cutting measures include merging FedEx Express, Fedex Ground, FedEx Services and other FedEx operating companies into a single entity known as Federal Express Corporation, according to a news release. The transition will take place in phases, with full implementation of the unified, fully integrated air-ground network expected by June 2024, the release said.

FedEx Freight will continue to provide less-than-truckload freight transportation services as a stand-alone company under Federal Express Corporation, according to the release.

FedEx CEO and President Raj Subramaniam will continue to lead the company following its consolidation.

“Over the last 50 years, we built networks that have created a differentiated and unmatched portfolio of services,” Subramaniam said in the release. “This organizational evolution reflects how we represent ourselves in the marketplace – focused on flexibility, efficiency, and intelligence. As one FedEx team, we are well positioned to execute on our mission to help customers compete and win with the world’s smartest logistics network.”

As part of the transition, John Smith will become president and CEO of U.S. and Canada Ground Operations at FedEx Express and assume leadership of surface operations across the FedEx Express, FedEx Ground and FedEx Freight businesses, according to the release. Meanwhile, Richard Smith will serve as president and CEO of airline and international at FedEx Express, overseeing all other regions and FedEx Logistics.

The Memphis, Tennessee-based global package logistics provider said it expects to realize permanent cost reductions of $4 billion in fiscal 2025, including savings of $1.2 billion in surface network, $1.3 billion in air network and international, and $1.5 billion in general and administrative, according to the release.

“We are building a simplified experience for our customers, who are at the center of everything we do, so they can adapt to the market,” Subramaniam said. “This combination will allow us to provide customers with even greater value, offering the most advanced data-driven insights to help them make smarter decisions for their business.”

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.