NewsFedEx 1Q profit doubles; will cut 1,700 jobs
by Dan Crawford
Via Daily job cuts, this report highlights a problem:
NewsFedEx 1Q profit doubles; will cut 1,700 jobs
NEW YORK — FedEx says its fiscal first-quarter earnings doubled and the company will cut 1,700 jobs as it consolidates its trucking operations to save money.
The company is also boosting its quarterly per share outlook to between $1.15 and $1.35, from $1.05 to $1.25.
The Memphis, Tenn., company earned $380 million, or $1.20 per share, compared with $181 million, or 58 cents per share a year ago.
Revenue rose 18 percent to $9.46 billion.
FedEx will combine its FedEx Freight and FedEx National LTL operations on Jan. 30, closing 100 facilities and cutting 1,700 workers. FedEx Corp. says the move, along with other cost cuts, will ensure it’s profitable next year.
missed wall street projections by one cent & the stock sold off…they had to do something
Exactly!
pointing out a double from the nadir of the recession is a very misleading way to frame this.
another way to look at it is that FEDX profits are down 23% from Q1 2008 despite 3% higher revenues.
this makes cost cutting look more needed.
wopuld you invest in a company that was deliberately spending too much money on redundant shipping centers?
companies exist to make a profit, not to provide jobs.
they are not your dad.
Just a thought here, but could it be that the “problem” highlighted isn’t FedEx?
If you have 11 children and a pet tiger who eats one child a week, how long will it take before you decide to get rid of the pet?
(Hint: The pet isn’t FedEx)
… and yes, getting rid of a tiger might not be so easy. You might lose more children than you’d like before it can be accomplished. Doing nothing means losing them all.
What, exactly, are you proposing? The nationalization of a shipping company? That we’d all be better off if all jobs were government jobs?
Maybe FedX thinks there will be a double dip in the economy?
FedEx Ground delivery drivers today found themselves on the wrong end of the Superior Court of Washington for King County ruling in a class action they brought in 2004. The court ruled that the delivery drivers are not employees but independent contractors, and therefore not entitled to overtime and reimbursement of uniform costs.
The class action involved 320 drivers who alleged the company was wrongly referring to them as entrepreneurs rather than employees.
This is the first case challenging the FedEx Ground business model to be tried by a jury. A similar, national class action is pending in Indiana, involving 30,000 former and current FedEx contractors.
http://www.uslaw.com/lawsuits/FedEx?itemid=1212
employees means what?
Maybe FedX doesn’t care if their own employees can afford to use the service.
it depends on the contract rdan.
the guys who work for me all prefer to be independent contractors. we’d hire them as “employees if that’s what they wanted, but they don’t. hell, i call myself a “contractor” and i’m a founder. filing taxes as an sole proprietor has a lot of advantages.
sounds to me like these were pretty clear contracts willingly entered into by the employees. if they signed on as contractors, they are contractors. the same is true of lots of employees in lots of fields. many stockbrokers and realtors work this was as well.
if i you want overtime, get a job that pays it. if you take a job that doesn’t, that’s your choice, no?
FedEx Corp. acquired privately held Kinko’s Inc. in February 2004 and rebranded it FedEx Kinko’s. The acquisition was made to expand FedEx retail access to the general public. After the acquisition, all FedEx Kinko’s locations exclusively offered only FedEx shipping.,;
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