FedEx Freight says layoffs temporary until business picks up

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FedEx Freight says layoffs temporary until business picks up

Robert Besser
18 Nov 2022, 03:36 GMT+10

FedEx Corp’s freight division has announced that it is laying off employees in some U.S. markets
The announcement came soon after the delivery company warned of lower-than-expected delivery volumes in the U.S. due to the deflating COVID-19-driven e-commerce bubble
In an emailed statement, the company said it “will continue to evaluate the environment and bring back furloughed employees as business circumstances allow”

MEMPHIS, Tennessee: FedEx Corp’s freight division has announced that it is laying off employees in some U.S. markets.

The announcement came barely a week after the delivery company, based in Memphis, Tennessee, warned of lower-than-expected delivery volumes in the U.S. due to the deflating COVID-19-driven e-commerce bubble.

In an emailed statement, the company said it “will continue to evaluate the environment and bring back furloughed employees as business circumstances allow.”

Some eligible employees will be offered permanent transfer opportunities to other markets that have hiring needs, while for furloughed employees, FedEx Freight will maintain health benefits and provide other financial incentives, the statement added.

After falling demand hit its first-quarter profits, FedEx announced cost cuts of up to $2.7 billion in September.