Fedex to cut thousands from workforce

Fedex, the global delivery company, said Wednesday it was planning to cut "several thousand" people from its workforce via a voluntary departure program beginning early next year. Company chairman Fred Smith said at an investment conference in Memphis, Tennessee, that the cuts would come in the company's Fedex Express global express delivery service, and in the US unit, Fedex Services. The cuts are part of a plan to boost profits by $1.7 billion by 2016, mainly through intensified cost reductions. They also come in the wake of the company's warnings that its business is being hit by the global economic slowdown. The company gave no specific number on the staff reductions, but emphasized they would be voluntary. "Our overall strategy is closely tied to effective yield management," Smith said in a statement ahead of the conference. "The key is striking the right balance between volume growth and yield improvements. With slow economic growth, however, the cost reduction programs... are also essential to achieve our financial goals."