FedEx cutting back
It seems that FedEx Corp has a lot more to worry about than Spencer Patton. Patton is the one who warned everyone about a third of independent ground delivery drivers going out of business.
They’re going under just in time for Black Friday. That news didn’t help the stock price any.
The corporation announced dismal first quarter financial results on Thursday. They also gave the heartbreaking news they are “initiating several cost-cutting initiatives to offset a declined volume of packages which dropped its quarterly revenue below expectations.” Initiatives like parking planes and laying off workers.
They have no choice, FedEx officials declare. They were “adversely impacted by global volume softness that accelerated in the final weeks of the quarter.”
Joe Biden and his incompetent mismanagement of domestic policy has crippled the shipping industry.
That “led to a revenue shortfall of approximately $500 million” for the “Express” branch of the company and a gap of around $300 million for ground service forecasts. These numbers have President and CEO Raj Subramaniam slashing budgets.
“While this performance is disappointing, we are aggressively accelerating cost reduction efforts and evaluating additional measures to enhance productivity, reduce variable costs, and implement structural cost-reduction initiatives,” FedEx suggests.
He mentioned he tried to brace everyone for this in June and he hopes that things can be straightened out in a few years, by the end of 2025. Until then, it’s time to tighten the belts.
Step number one is cutting service to the bone by reducing flight frequency and parking planes. Next is slashing hours to match volume and paring down “other linehaul expenses.” They can consolidate sorting operations to “drive productivity.”
If you were hoping for a Sunday FedEx Ground pickup, forget it. Sunday operations are being shut down at a number of locations. A large number. Any which aren’t bringing in enough bucks to justify staying open.
Along with canceling some planned network capacity projects, which aren’t needed because they’re nowhere near capacity, FedEx put a hiring freeze in place. They don’t need more workers when they’re closing “over 90” of their office locations. They also picked the five corporate offices where management isn’t getting the job done and closing them.
They can sell the land and make up for the operations losses. One thing looks pretty solid, Spencer Patton and the other independent drivers can forget better contracts. Go ahead and go under, you aren’t needed anyway. They also advise to send the nasty letters to Washington, not to them.
As soon as the dire forecasts hit the airwaves, “FedEx shares dropped 13% after markets closed.” They know it will only get worse.
“The company said that it expects business conditions to further weaken in the second quarter. In addition, anticipated capital spending for the 2023 fiscal year has been revised to $6.3 billion, as opposed to the prior forecast of $6.8 billion.”
They took the 2023 earnings forecasts and tore them up because they know they’re nothing close to reality. The suits say that 2024 isn’t looking much better “due to expectations of a continued volatile operating environment.”
https://rightwingnewshour.com/fedex-is-closin...ng%20Worse
It seems that FedEx Corp has a lot more to worry about than Spencer Patton. Patton is the one who warned everyone about a third of independent ground delivery drivers going out of business.
They’re going under just in time for Black Friday. That news didn’t help the stock price any.
The corporation announced dismal first quarter financial results on Thursday. They also gave the heartbreaking news they are “initiating several cost-cutting initiatives to offset a declined volume of packages which dropped its quarterly revenue below expectations.” Initiatives like parking planes and laying off workers.
They have no choice, FedEx officials declare. They were “adversely impacted by global volume softness that accelerated in the final weeks of the quarter.”
Joe Biden and his incompetent mismanagement of domestic policy has crippled the shipping industry.
That “led to a revenue shortfall of approximately $500 million” for the “Express” branch of the company and a gap of around $300 million for ground service forecasts. These numbers have President and CEO Raj Subramaniam slashing budgets.
“While this performance is disappointing, we are aggressively accelerating cost reduction efforts and evaluating additional measures to enhance productivity, reduce variable costs, and implement structural cost-reduction initiatives,” FedEx suggests.
He mentioned he tried to brace everyone for this in June and he hopes that things can be straightened out in a few years, by the end of 2025. Until then, it’s time to tighten the belts.
Step number one is cutting service to the bone by reducing flight frequency and parking planes. Next is slashing hours to match volume and paring down “other linehaul expenses.” They can consolidate sorting operations to “drive productivity.”
If you were hoping for a Sunday FedEx Ground pickup, forget it. Sunday operations are being shut down at a number of locations. A large number. Any which aren’t bringing in enough bucks to justify staying open.
Along with canceling some planned network capacity projects, which aren’t needed because they’re nowhere near capacity, FedEx put a hiring freeze in place. They don’t need more workers when they’re closing “over 90” of their office locations. They also picked the five corporate offices where management isn’t getting the job done and closing them.
They can sell the land and make up for the operations losses. One thing looks pretty solid, Spencer Patton and the other independent drivers can forget better contracts. Go ahead and go under, you aren’t needed anyway. They also advise to send the nasty letters to Washington, not to them.
As soon as the dire forecasts hit the airwaves, “FedEx shares dropped 13% after markets closed.” They know it will only get worse.
“The company said that it expects business conditions to further weaken in the second quarter. In addition, anticipated capital spending for the 2023 fiscal year has been revised to $6.3 billion, as opposed to the prior forecast of $6.8 billion.”
They took the 2023 earnings forecasts and tore them up because they know they’re nothing close to reality. The suits say that 2024 isn’t looking much better “due to expectations of a continued volatile operating environment.”
https://rightwingnewshour.com/fedex-is-closin...ng%20Worse
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