FedEx (NYSE: FDX) is scheduled to report its fiscal Q3 2021 results on Thursday, March 18. FedEx Corp. (NYSE:FDX) said Monday it was offering voluntary buyouts to some of its U.S. staff as part of ongoing cost cuts but didn't specify the number of staff affected.The package delivery and logistics company, which competes with United Parcel Service (NYSE:UPS), said most of the eligible employees work for FedEx Express and FedEx Services. The company said it would offer early retirement and voluntary severance programs to about 12% of its management and salaried employees. The president of FedExs European express delivery operation, Karen Reddington, said in a statement that the job cuts are crucial to make the company more competitive in a changing market. Data delayed 15 minutes unless otherwise indicated. Looking back at fiscal Q2 2021, revenues grew a solid 19% to $20.6 Bil, with Ground segment seeing a sharp 38% y-o-y jump in revenues. More on Reductions in Force RIFs, at ask.FEDweek.com, Following is a summary from the EEOC of the Pregnant Workers Fairness Act provisions which will affect federal employees among , Following are the key sections of an OPM report on actions under the Biden administrations diversity, equity, inclusion and accessibility , Following is a Congressional Research Service report examining the background of two offsets against Social Security benefits applying to the , An IG review has found multiple security vulnerabilities and deficiencies at VA facilities, many of them related to shortages of [], OMB has issued guidance for removing TikTok from agency-issued smart phones and other devices, as required by the wrapup agency [], An inspector general report has raised issues with how well the work hours that Postal Service supervisors report are supported [], Law Enforcement Retirement Countdown Clock, Webinar: Your Federal Retirement Benefits, Public Service Loan Forgiveness (Sponsored), Report: Federal Employee Benefits & Divorce, Military Service Credit for Federal Retirement, FLTCIP Federal Long Term Care Insurance Program, FEGLI Federal Employees Group Life Insurance, Dual Employment in the Federal Government, The decision whether or not to offer a buyout even once an agency has the authority is strictly up to the agencys discretion. Jason McDaniel | Commercial Vehicle Group, ATAs Spear calls out 'unrealistic' trucking emissions timelines, Phillips expands, adds new business unit to group of companies. Forward-looking statements include those preceded by, followed by, or that include the words will, may, could, would, should, believes, expects, anticipates, plans, estimates, targets, projects, intends, or similar expressions. FedEx said it is determining which workgroups will be eligible for these incentives and the program will not include any changes to retirement eligibility or payments. FedEx said it expects the job reductions to produce annual operating savings of $150 million to $190 million by 2005. Advertising Cookies collect information about your browsing habits such as the pages you visit and links you follow. The Board of Directors of FedEx Corp. today declared a quarterly cash dividend of $0.75 per share on FedEx Corp. common stock, a $0.10 per share increase over the previous dividend payment. Get this delivered to your inbox, and more info about our products and services. Employees also may elect a deferred annuity at age 62 if they have at least five years of service at separation. Earlier this week, Amazon announced it will temporarily prevent sellers from using FedEx's ground-delivery service for Prime orders. (3) Stock price estimate 20% above than the current market price. Performance Cookies collect anonymous information designed to help us improve the site and respond to the needs of our audiences. Going by our FedEx Valuation of $342 per share, based on expected adjusted EPS of $18.01 for fiscal 2021 (fiscal ends in June) and a P/E multiple of 19x, we believe that there is still some room left for growth. Job PlacementCompetitive service employees in Groups I and II who have received a specific notice of separation by a RIF are eligible for placement assistance in finding other positions. However, our forecast indicates that FedExs valuation is around $320 per share, which is roughly 20% above the current market price of around $267. HONG KONG, CHINA - 2021/03/25: American FedEx Express delivery and Chinese multinational delivery [+] services and logistics company trucks seen in Hong Kong as a pedestrians walks past them. FedEx employs about 300,000 around the world and about 115,000 combined at the two businesses affected. In September, FedEx lowered its per-share forecast range to $19.75. The CapEx/Revenue target metric in the new LTI program is lower than in prior years to align with FedExs capital plans for fiscal years 2023 through 2025, and the Company expects to further lower its capital intensity in subsequent years. The world's second-largest package delivery company hinted at cutbacks earlier this summer when it said that slowing economic growth would crimp its earnings well into next year. Amy Lane currently serves as a director of NextEra Energy, Inc. and TJX Companies Inc. Ms. Lane was a Managing Director and Group Leader of the Global Retailing Investment Banking Group at Merrill Lynch & Co., Inc., from 1997 until her retirement in 2002. Our dashboard on FedExs Revenues offers more details on the companys segments. . Sign up for our newsletter to keep reading. Dies geschieht in Ihren Datenschutzeinstellungen. We are pleased to welcome Amy and Jim to the FedEx Board, Subramaniam said. Revenue increased 14% to $23.5 billion, fueled by elevated demand for e-commerce home deliveries. The company expects to provide more details at an investor meetings in October. Earlier Tuesday, FedEx reported weaker-than-expected fiscal second-quarter results and lowered its full-year earnings outlook for 2020. FERS employees also are allowed a deferred annuity at their minimum retirement age with 10 years of service, although the annuity is reduced 5 percent for each year the annuitant is under age 62 when benefit payments begin. She also served on the Board of Urban Edge Properties from 2015 until 2022 and GNC Holdings, Inc. from 2011 until 2020. FedEx said those that are close to retirement are also eligible for buyouts. FedEx (NYSE: FDX) recently announced a revision in surcharges for certain express and ground shipments. They both possess skills and experience that will be valuable to the Board as we oversee the execution of our strategy and financial objectives. Then TNTs computer systems became infected during a worldwide cyberattack called NotPetya, disrupting service and causing FedEx to take a $300m charge against earnings in 2017. FedEx Corp. has announced plans to trim about 14,000 jobs from its FedEx Express cargo unit, the company announced yesterday. Even if FedEx were to report below consensus earnings, the stock looks attractive at the current valuations. The pandemic has undoubtedly brought supply chain resilience to the fore. It was formed in 2000 and with annual revenue of $1.7 billion in 2012, is one of FedEx's smallest units. Throw in the fact that UPS trades at a small discount and has a. "If you think about all the positive things we've said and that we're seeing, as we get into 2021, we will start lapping Amazon," FedEx CFO Alan B. Graf Jr. said on the company's earnings call Tuesday evening. For as many tailwinds as FedEx had going into last night's earnings announcement, the company was no match for the 2021 two-step. The biggest story of FedEx's 2021 and arguably one of the biggest in its history will be the distribution of COVID-19 vaccines. Roughly 1,500 FedEx employees in the U.S. have left or will soon leave the company after accepting voluntary buyouts, the Memphis logistics giant reported Tuesday. The Information Technology Oversight Committee was renamed the Cyber and Technology Oversight Committee to better reflect the committees focus on cyber and technology risk management. FedExs fiscal Q3 2021 earnings per share is expected to be $3.10 per Trefis analysis, 8% below the consensus estimate of $3.36. The comments come after FedEx reported disappointing fiscal second-quarter results and lowered its full-year earnings outlook for 2020. Terms of use. Outside candidates. twenty-five percent of the otherwise applicable amount for each full three months of creditable service beyond the final full year. This time last year, everyone thought Amazon would buy the logistics company to beef up its own. Our focus is to build on this foundation and continue creating long-term value for our stockholders.. FedEx is also adding two highly qualified independent directors, Amy Lane and Jim Vena, to its Board effective immediately. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate; our ability to meet our labor and purchased transportation needs while controlling related costs; a significant data breach or other disruption to our technology infrastructure; the continuing effect of the COVID-19 pandemic; anti-trade measures and additional changes in international trade policies and relations; the effect of any international conflicts or terrorist activities, including as a result of the current conflict between Russia and Ukraine; our ability to successfully implement our business strategy, effectively respond to changes in market dynamics, and achieve the anticipated benefits and associated cost savings of such strategies and actions, including our ability to successfully implement our FedEx Express workforce reduction plan in Europe and to continue to transform and optimize the FedEx Express international business, particularly in Europe; damage to our reputation or loss of brand equity; changes in the business or financial soundness of the U.S. We use this information to make our site faster, more relevant and improve the navigation for all users. This represents a $0.40 per share, or 53 percent, increase from the previous dividend of $0.75. The US delivery giant says the job cuts will happen over 18 months as it integrates former rival TNT which suffered a costly cyberattack in 2017. Any forward-looking statement speaks only as of the date on which it is made. FedEx to begin offering buyouts to U.S. employees. Reuters. We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. FedEx has identified an additional $1 billion in cost savings beyond its September forecast and now expects to generate savings of $3.7 billion. They also may receive special selection priority for positions in their agency within the local commuting area for which they apply and are found well qualified. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. FedEx said in a statement on Tuesday that the cuts will take place over 18 months and include express-delivery operations and back-office employees of TNT Express across the continent. Certain statements in this press release may be considered forward-looking statements, such as statements relating to future capital expenditures, managements views with respect to future events and financial performance, and underlying assumptions. A Division of NBCUniversal. FedEx's net income of $1.3 Bil in fiscal Q2 2021 reflected a. Original Print Headline: FedEx to cut costs by offering buyouts. We look forward to the Company further detailing its plans to enhance stockholder value at the investor day later this month, said Michael OMary, Managing Director at the D. E. Shaw group. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping us understand which sections of the website you find most interesting and useful. In September, FedEx lowered its per-share forecast range to $19.75 to $21.00 per share. . Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Its forecast for the first-quarter, which ends this month, fell well below Wall Street expectations. The company hasn't yet decided how many positions will be cut. With a new, highly contagious Covid-19 variant, reduced port and air cargo capacity and heightened consumer demand, it will continue to impact global trade well into 2022. Copyright Proactive Group Holdings Inc, 2023. Meanwhile, demand growth continues to pick up over the first 10 months of the year cargo demand in cargo revenue tonne km terms is up by more than 8% according to IATA putting capacity under pressure. The unit reported revenue of $26.5 billion in the latest fiscal year and has more than 146,000 employees worldwide - 102,000 of those in the U.S. Services is FedEx's behind-the-scenes logistics division, but it also includes FedEx Office, formerly Kinko's. [Updated: 3/16/2021] FDX Fiscal Q3 Earnings Preview. FedEx is continuing to see record-breaking, peak-like levels of volume and demand, and in FY 2021, its revenue surged pastthe $80 billion mark with the company predicting sales to eclipse $90. All these changes will come into effect from June 21, 2021. While the company has benefited from volume growth over the recent quarters, it will likely see growth in its margins going forward, driven by better pricing. Their skittishness was also felt in the second quarter, where UPS missed analysts' expectations for both earnings and revenue. Under the Interagency Career Placement Program, all surplus and displaced employees who work in executive branch agencies are eligible to receive career transition assistance from their agencies. Provided that the separated employee did not refuse a RIF offer of assignment to a position at the same grade, a separated Group I employee is placed on the RPL for two years; a separated Group II employee is placed on the list for one year. Those retiring can carry FEHB and FEGLI coverage into retirement under the same terms as voluntary retirees. News usnews.nbcnews.com. UPS, FedEx draw fire after Christmas delivery problems. FedEx said it expects the job reductions to produce annual operating savings of $150 million to $190 million by 2005. https://www.linkedin.com/company/fleetowner/. Back in January, FedEx announced plans up to fire thousands of workers across Europe, stating publicly the completion of the TNT Express integration as a reason. Following a detailed review, the FedEx Board of Directors declared a quarterly cash dividend of $1.15 per share on its common stock. You have permission to edit this article. These appointments were made in connection with a cooperation agreement with the D. E. Shaw group. A third independent director mutually agreed upon by the Company and the D. E. Shaw group will be added to the Board at a later date. Amazon said it made the decision based on FedEx's poor delivery performance and to make sure shoppers would receive their packages in time for Christmas. Virgin Atlantic Cargo hires head of distribution, Texel Air launches New Zealand operations, I have been writing about the freight and logistics industry since 2007 when I joined International Freighting Weekly to cover the shipping sector. This website uses cookies so that we can provide you with the best user experience possible. FedEx plans to downgrade an air service hub in Liege, Belgium, to make Paris its sole primary hub. The dividend is payable on July 11, 2022, to stockholders of record as of the close of business on June 27, 2022. But now that FDX stock has seen such a large move, will it resume its upwards trajectory over the coming weeks, or is a decline in the stock imminent? Klicken Sie auf Einstellungen verwalten um weitere Informationen zu erhalten und Ihre Einstellungen zu verwalten. The dividend is payable July 12, 2021 to stockholders of record at the close of business on June 28, 2021. FedEx said on Tuesday that it has successfully integrated FedEx and TNT information technology systems and key parts of the air and ground networks. Package-delivery company FedEx Corp (NYSE:FDX) said it will offer voluntary buyout incentives to certain U.S.-based employees to reduce costs as slow economic growth hurts shipping . FedEx CEO called Q2 2020 earnings an 'anomaly'. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. TNT had a large ground delivery business in Europe. It has 13,000 employees, all of whom are U.S. based. (Photo by Budrul Chukrut/SOPA Images/LightRocket via Getty Images). The spat between Amazon and FedEx has heated up significantly in the past year. Retirement is allowed during a RIF at standard age and service requirements. 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