Memphis, TN – Early this morning another one thousand FedEx employees were laid off worldwide. In Memphis, 500 professionals were laid off. Here's Nicole Erwin.
When FedEx released its second quarter earnings in mid-March officials announced a series of cost reduction actions. Those included salary cuts, the freezing of company matches for 401K contributions and reductions in the network. Jess Bunn is a spokesperson for FedEx, he says those statements were made during the worst economic decline the company had ever faced and had hoped to save more jobs. Unfortunately again in December the market continued to decline and the layoffs were inevitable.
The company has a reputation for not laying people off, but its income is down 75 percent in one year and it plans to cut $1 billion in fiscal year 2010. In February FedEx reduced its freight line by 900 individuals, putting the total number of layoffs at 1900. Jess Bunn was unable to say whether or not this layoff surge would be the last. Currently, the unemployment rate in Memphis is 8.9 percent. Nationally it's 8.5.