Specialist Essay

294 Words2 Pages
FedEx Corporation will combine two freight companies into a single operating unit. The combination of FedEx Freight, a nationwide3 regional carrier will combine with FedEx National, a nationwide long-haul carrier. FedEx has marketed National as a long-haul, more economic option to its mainstay, FedEx Freight. FedEx Corporation expects this move will help FedEx reduce operational cost, and provide customers a choice of priority or economy less-than-truckload (LTD) freight services from one integrated company. FedEx will lay off about 1,700 full-time employees and close about 100 facilities, FedEx estimates the restricting program will cost $150 million to $200 million, primarily related to severance costs associated with personnel reductions, lease terminations and certain non-cash charges. Combining the two trucking companies into one will reduce redundancies and eventually result in profit for that division. However, it could create increased rates and gains for certain national carriers such as Old Dominion, Estes, R&L, Con-way and maybe even struggling Yellow Roadway Company. FedEx Corporation, originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee. The name “FedEx” is a syllabic abbreviation of the name of the company’s original air division, Federal Express. FedEx Corporation provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $36 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. It consistently ranked among the world’s most admired and trusted employers. FedEx inspires it more than 280,000 team members to remain “absolutely, positively” focused on

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