Saturday, March 21, 2009

FedEx to cut 1,000 jobs, $1 billion in expenses

MEMPHIS — FedEx’s profits have nose-dived 75 percent from year-ago levels, prompting the company to slash 1,000 more jobs and cut $1 billion in expenses.
The Memphis-based express delivery giant on Thursday reported fiscal third-quarter earnings of 31 cents per share — significantly worse than the 48 cents per share analysts predicted.

Profits from FedEx’s Express, Ground, Freight and Services segments were $97 million on revenues of $8.1 billion for the three months ending Feb. 28, compared with $393 million, or $1.26 a share, on revenues of $9.44 billion a year earlier.

Company officials announced plans to cut $1 billion in annual expenses, including extending pay cuts to include foreign employees, where possible, and further reductions of personnel and work hours.

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