FedEx To Slash Thousands of Jobs

[Peace]

FedEx To Slash Thousands of Jobs

Posted by Wealth Wire - Friday, October 12th, 2012

One key measure of global economic health is how much freight – raw materials and manufactured goods – is being shipped around the world and in the United States. In July of this year the Balctic Dry Index, a measure of the price to pay for the movement of raw materials by sea, hit a record breaking low and signaled a steep decline in global manufacturing and consumption.

This was a key indicator for where the economy was headed on a global scale.

Just a few months later we’ve received confirmation of this trend from FedEx, one of the largest shipping companies in the world.

Yes, Americans are still shopping, but they aren’t shopping at the same pace they were five years ago. Their jobs have been eliminated, wages reduced and credit has been restricted. FedEx’s latest earnings report is proof positive of this:

Earnings for the first quarter were below our expectations as weak global economic conditions dampened revenue growth, drove a shift by our customers to our deferred services and outpaced our near-term ability to reduce FedEx Express operating costs to match demand levels.

Source: FedEx

Demand for FedEx services is down overall for a variety of reasons, including less retail consumption in an already struggling economy and a customer shift to cheaper shipping methods.

As a result of weakening earnings, profits and customer demand for their services, FedEx has been forced to implement internal cost-cutting measures, and as you may have already guessed that means staff layoffs:

Fedex, the global delivery company, said Wednesday it was planning to cut “several thousand” people from its workforce via a voluntary departure program beginning early next year.

Company chairman Fred Smith said at an investment conference in Memphis, Tennessee, that the cuts would come in the company’s Fedex Express global express delivery service, and in the US unit, Fedex Services.

The cuts are part of a plan to boost profits by $1.7 billion by 2016, mainly through intensified cost reductions.

They also come in the wake of the company’s warnings that its business is being hit by the global economic slowdown.

Source: France 24 via What Really Happened?

While official unemployment reports attempt to make the case for an economic and jobs recovery, the fact of the matter is that Americans are being laid off across the country in just about every key industry, and as ridiculous and unbelievable as it may sound, this may just be the beginning.

Earlier this week we learned that Darden Restaurants (the parent company of Olive Garden and Red Lobster) will be laying off workers citing the economy, as well as government regulation, namely Obamacare going into effect in 2013.

Prominent CEOs around the country see the writing on the wall, as do many political and financial insiders such as financier George Soros who warned earlier this year that even the best-case scenario will be painful:

I am not here to cheer you up.

The situation is about as serious and difficult as I’ve experienced in my career.

…

We are facing an extremely difficult time, comparable in many ways to the 1930s, the Great Depression. We are facing now a general retrenchment in the developed world, which threatens to put us in a decade of more stagnation, or worse.

The best-case scenario is a deflationary environment. The worst-case scenario is a collapse of the financial system.

Plan on the worst-case.

The collapse of the American way of life is happening before our eyes. It’s been at least four years since this recession began, and we may have a much longer road ahead of us. The Great Depression was an event that spanned at least ten years, followed by five years of global war.

We’re looking at a series of events that may last not for 18 months (like typical recessions do) or a few years, but perhaps a decades-long decline that destroys the wealth and stability of the United States of America.

[jeepguy]

could be from over the top stimulus plan ,,, of they have over hired , kind of like our company ,, i think it will not matter who gets elected into office , the same out come will happen,

[dontlop]

record breaking low and signaled a steep decline in global manufacturing and consumption.

everything is working just how it was planned

this is and was the goal of of every enviromentalist.

obutma may of tried to get the numbers in line for this election but if he stays in office .. this is only the beginning. he and his idiots will do their best to shut down regulate out as much as possible in his second term.. he will blame everything on the "do nothing republican congress .. since they will refuse to help him shut down america.... and the morons of america will vote in another democrat majority in 2014 and obamas last 2 years will be the knife in americas back,, the slitting of its throat ... obama will go suicidal . like every good black liberation muslim liar would

Edited October 13, 2012 by dontlop

[Goldiegirl]

Most large companies who lay off people do so through early retirement of long term employees...I don't believe this should be looked upon as unfavorably.

Early retirement incentives will be offered to these folks as companies like FedEx try to keep costs down all over the world. It's been going on for decades.

The media likes to hike up these stories to get a rise out of the general public. Don't believe everything you hear in the newspapers or watch on the news in North America anymore than you do with the Iraq news....it's all in how it's presented and mostly just one sided.

[Peace]

<br />Most large companies who lay off people do so through early retirement of long term employees...I don't believe this should be looked upon as unfavorably. <br /><br />Early retirement incentives will be offered to these folks as companies like FedEx try to keep costs down all over the world. It's been going on for decades.<br /><br />The media likes to hike up these stories to get a rise out of the general public. Don't believe everything you hear in the newspapers or watch on the news in North America anymore than you do with the Iraq news....it's all in how it's presented and mostly just one sided. <img src='http://dinarvets.com/forums/public/style_emoticons/default/huh.gif' class='bbc_emoticon' alt='' /><br />

<br /><br /><br />

Most people can't live comfortably from their retirements! We do not know that that is FedExs intention. They said they will be taking "volunteers". Even If they were to take early retirement, these people aren't living the "American Dream". Most are in debt. With spending increasing and cola staying flat they have nothing but a meager outlook. There may be a few who get jobs but the economy is worsening, you surely don't believe it getting better?! How are layoffs positive for any company? Usually means that they are not growing.

[Goldiegirl]

<br /><br /><br />

Most people can't live comfortably from their retirements! We do not know that that is FedExs intention. They said they will be taking "volunteers". Even If they were to take early retirement, these people aren't living the "American Dream". Most are in debt. With spending increasing and cola staying flat they have nothing but a meager outlook. There may be a few who get jobs but the economy is worsening, you surely don't believe it getting better?! How are layoffs positive for any company? Usually means that they are not growing.

General Motors did this 3 years ago with their long term employees. They actually paid them for two years (and the guys didn't work they just sat at home on their A$$) and then they got their monthly retirement. These guys still bitched. Tell me where it is written that companies must keep employees at all cost?

GM laid off the old timers and the young ones...Yeah the young ones bitched too...they thought they had it in there for life....making the big bucks. Well they gave them 2 years to find another job, trade or whatever.

People think that they should be "SAVED"...and have a job for life if they wish.

As a person who have never worked for a union, or gained any kind of pension from a company due to the nature of my career, and as a person who has lost jobs the past 25 years to various economic downturns, I have had to save and plan for my future...they should be no different.

People lived "high off the hog" in the 80's and 90's. They didn't plan for the future.

Cut backs have been going on since the beginning of the 80's.....nothing is changed....Your are just seeing in all now that the world is in such an economic mess.

Like I said, the media like to sensationalize it all.

[Peace]

<br />General Motors did this 3 years ago with their long term employees. They actually paid them for two years (and the guys didn't work they just sat at home on their A$$) and then they got their monthly retirement. These guys still bitched. Tell me where it is written that companies must keep employees at all cost?<br /><br />GM laid off the old timers and the young ones...Yeah the young ones bitched too...they thought they had it in there for life....making the big bucks. Well they gave them 2 years to find another job, trade or whatever. <br /><br />People think that they should be "SAVED"...and have a job for life if they wish.<br /><br />As a person who have never worked for a union, or gained any kind of pension from a company due to the nature of my career, and as a person who has lost jobs the past 25 years to various economic downturns, I have had to save and plan for my future...they should be no different. <br /><br />People lived "high off the hog" in the 80's and 90's. They didn't plan for the future.<br /><br />Cut backs have been going on since the beginning of the 80's.....nothing is changed....Your are just seeing in all now that the world is in such an economic mess.<br /><br />Like I said, the media like to sensationalize it all.<br />

<br /><br /><br />

You say, "Tell me where it is written that companies must keep employees at all cost?" I say, "I didn't ask!" The whole reason I posted this article was to show decline in spending. When FedEx has to lay off people it shows the state of the economy. Nothing more. All you have offered is your opinion on what this means at the individual worker level. You are comparing GM to FedEX. One company the Government has stake in "GM", the other "FedEx" is privately held...no comparison when talking retirement. I don't care who "bitched". I'm just posting the fact that FedEx is having to lay off people...the bigger concern here should be where are they going to get jobs.

You say, "nothing has changed", on the contrary! Regulations Regulation Regulations...Laws stifling the American Company have been created to move jobs overseas. Regulations stop growth.

<br />General Motors did this 3 years ago with their long term employees. They actually paid them for two years (and the guys didn't work they just sat at home on their A$$) and then they got their monthly retirement. These guys still bitched. Tell me where it is written that companies must keep employees at all cost?<br /><br />GM laid off the old timers and the young ones...Yeah the young ones bitched too...they thought they had it in there for life....making the big bucks. Well they gave them 2 years to find another job, trade or whatever. <br /><br />People think that they should be "SAVED"...and have a job for life if they wish.<br /><br />As a person who have never worked for a union, or gained any kind of pension from a company due to the nature of my career, and as a person who has lost jobs the past 25 years to various economic downturns, I have had to save and plan for my future...they should be no different. <br /><br />People lived "high off the hog" in the 80's and 90's. They didn't plan for the future.<br /><br />Cut backs have been going on since the beginning of the 80's.....nothing is changed....Your are just seeing in all now that the world is in such an economic mess.<br /><br />Like I said, the media like to sensationalize it all.<br />

<br /><br /><br />

You say, "Tell me where it is written that companies must keep employees at all cost?" I say, "I didn't ask!" The whole reason I posted this article was to show decline in spending. When FedEx has to lay off people it shows the state of the economy. Nothing more. All you have offered is your opinion on what this means at the individual worker level. You are comparing GM to FedEX. One company the Government has stake in "GM", the other "FedEx" is privately held...no comparison when talking retirement. I don't care who "bitched". I'm just posting the fact that FedEx is having to lay off people...the bigger concern here should be where are they going to get jobs.

You say, "nothing has changed", on the contrary! Regulations Regulation Regulations...Laws stifling the American Company have been created to move jobs overseas. Regulations stop growth.

Didn't mean to post twice my connection I'm in bad weather area. Not trying to press an issue

[DaveH]

Goldiegirl,

I agree with you wholeheartedly, except I believe the problems started earlier than the 80's. the problems started with the unions. The unions are why car companies(and why manufacturing left this country) cant make a buck off of the sale of a car. 90 bucks an hr to put together vehicles that are not worth a darn, on top of benefits and retirement packages that can not be sustained.

I believe the unions served a purpose and initially had good intentions, however the greed of the leaders ruined everything.

What good is it to make 30 bucks an hour as a laborer, if no one can afford to hire you?

The problems of this country run much deeper, but I am too exhausted to go on