News from FedEx has left some wondering what the company’s cost-cutting measures could mean in Memphis. FedEx, the city’s largest employer, has around 30,000 employees here. Related story: FedEx closing offices, deferring hiring, reducing flights after weak quarter
Citing adverse “macroeconomic trends,” FedEx CEO Raj Subramaniam announced a variety of cost-cutting initiatives, including reduction in flight frequencies and the closure of over 90 FedEx Office locations.
President Joe Biden said Thursday that a tentative railway labor agreement has been reached, averting a strike that could have been devastating to the economy before the pivotal midterm elections.Related story:
The majority of containerized goods coming into the Mid-South from overseas come in on one of the five Class I rails based here, said Woodson Dunavant of the logistics and supply chain management company Dunavant Enterprises.
Patton is calling for members of his contractor organization to vote on a call for no-confidence in FedEx Ground CEO John Smith. FedEx does not recognize the association.
FedEx Ground has relied on a contractor model since its inception. But what was once a low-cost solution now may be imperiled by the challenges of so-called last-mile delivery.
The FedEx Entrepreneur Fund will provide $10,000 grants to 30 small businesses. The deadline to apply is Friday, Oct. 7.
FedEx claims the contractor, which operated 225 routes in 10 states and had called for fees to be increased along with other changes, launched a “coordinated and multi-faceted campaign” that was “unfairly and wrongfully disparaging” FedEx Ground.
FedEx is seeking injunctive relief and monetary damages following what it called a “coordinated and multi-faceted campaign.”
As of May 31, FedEx Express had $1.3 billion in deposits and progress payments on aircraft purchases, including 46 Boeings it plans to buy by 2025.
With the funding, MATA is looking to add “service in the streets,” but it also hopes to move to a new headquarters within three years.
All of FedEx’s board members are up for election or reelection when the company’s shareholders have their annual meeting, scheduled this year for Monday, Sept. 19.
John Chevedden’s more than 1,000 shareholder proposals with different companies has resulted in companies spending millions of dollars in legal fees.
FedEx also announced Monday it will nominate retired Navy Vice Admiral Nancy A. Norton to its board when the company holds its annual meeting of stockholders in September.
“FedEx Ground will not discuss, negotiate, or renegotiate service provider agreements or financial terms with a committee or any individual purporting to represent a collective body of service provider businesses,” FedEx Ground CEO John Smith said in a letter to contractors.
Per the new agreement, FedEx will purchase up to $200 million in services from a Massachusetts-based technology company, in exchange for warrants for 25 million shares of its stock.
FedEx Corp. counters that the more than 6,000 service provider businesses in its Ground network earned an average revenue of $2.3 million in 2021.
“Scott’s impact on the success of MEM cannot be understated,” said the chair of the Memphis-Shelby County Airport Authority board.
In its annual report for the fiscal year ended May 31, FedEx disclosed numerous risks to its business, including Russia’s invasion of Ukraine and increased competition.
Gov. Bill Lee’s appointment will replace current board member R. Brad Martin, if confirmed by the Tennessee state legislature.
The logistics giant is closing its remaining data centers and moving completely to the cloud, a decision that it says will take two years.
At its most recent meeting of shareholders and analysts, the Memphis-based company announced it is no longer interested in keeping its networks separate. Instead, FedEx wants to benefit from their overlap.
Technicians at the Gateway service center on Summer are self-supplying the company’s need for skilled mechanics with a six-month course that guarantees full-time employment at its conclusion.
New CEO Raj Subramaniam faces soaring inflation, increasing competition from Amazon and an activist investor demanding shakeups to the board, but plans to grow earnings per share by as much as 19% over the next three years, as well as increase operating income by as much as $4.5 billion.
The logistics giant announced Wednesday, June 29, its new “Deliver Today, Innovate for Tomorrow” strategy as investors and analysts gathered in Memphis for the company’s 2022 investor meeting.