FedEx officers, directors accept buyout planFebruary 6, 2013 @ 3:45 pm
NEW YORK (AP) - FedEx Corp., the world's second biggest package delivery company, said Wednesday that it will lose more than 10 percent of its U.S.-based executives under a voluntary buyout plan.
The Memphis, Tenn., company says its personnel will leave the company in stages through May 2014.
Company spokesman Glen Brandow declined to say how many employees are leaving, or even how many U.S.-based officers and executives FedEx employs.
Most employees won't learn if they're eligible for the buyouts until next week, but they learned about the reductions in emails from their bosses.
In December FedEx offered employees up to two years' pay to leave. It's seeking to reduce annual costs by $1.7 billion by 2016. The company said then that it was pessimistic about the U.S. economy but confident about growing its own earnings.
FedEx is viewed as a bellwether of the nation's economic health because of the vast number and kinds of shipments it handles for consumers and businesses. It employs more than 278,000 people worldwide, according to FactSet.
The news comes on the same day the U.S. Postal Service said it will end Saturday mail delivery to stem massive financial losses. FedEx has an agreement with the Postal Service in which it helps deliver small packages to post offices around the country. The Postal Service says it will continue to deliver packages on a six-day schedule, and analysts don't think curtailing Saturday mail will have a serious impact on FedEx or rival UPS.
FedEx shares rose $1.10 to close at $106.17. They picked up another 11 cents in after-hours trading.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
Seattle veterinarians develop medicinal marijuana for your pets
This cold snap could break record lows over the weekend
The Holiday Map
Find lights, Santa photos, tree farms, and seasonal events with our holiday map
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.