FedEx announced plans to increase profits by $1.7 billion a year at a two-day meeting for investors this week. Most of that increase will come from cuts to the company’s oldest and largest division—FedEx Express.
FedEx Founder Fred Smith will cut costs at his flagship Express division. Smith made his announcement at a dinner at the Hilton Memphis where investors ate barbeque and banana pudding, then Smith stood up and told them his goal is to increase profits by $1.7 billion a year.
Smith will offer thousands of Express employees voluntary buyouts, close facilities, and increase automation.
“We are revamping the FedEx Express cost-structure through a combination of cost-reductions, efficiency improvements, and service repositioning,” Smith said.