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Be the first with the news that moves the market- FedEx Corp. (FDX) will consolidate its operating companies into one organization
- FedEx expects DRIVE to generate $4 billion of permanent cost reductions in fiscal 2025
- Based in Memphis, Tennessee, FedEx is one of the world’s largest multinational shipping agencies, with a fleet of 699 aircraft and multiple international hub cities
- FedEx Corp. (FDX) opened at C$232.10 per share
FedEx Corp. (FDX) will consolidate its operating companies into one organization.
Full implementation is expected by June 2024 under a phased transition that will bring FedEx Express, FedEx Ground, FedEx Services, and other FedEx operating companies into Federal Express Corp., becoming a single company operating a unified, fully integrated air-ground network under the FedEx brand.
FedEx Freight will continue to provide less-than-truckload freight transportation services as a stand-alone company under Federal Express Corp. Raj Subramaniam will serve as President and CEO of the combined organization.
The shipping company made the announcement at its DRIVE Investor Event on Wednesday.
“Over the last 50 years, we built networks that have created a differentiated and unmatched portfolio of services,” Raj Subramaniam, FedEx’s President and CEO said. “This organizational evolution reflects how we represent ourselves in the marketplace – focused on flexibility, efficiency, and intelligence. As one FedEx team, we are well positioned to execute on our mission to help customers compete and win with the world’s smartest logistics network.”
He added that the combination will offer data-driven insights to help customers make smarter decisions for their business.
This new structure will help facilitate the company’s DRIVE transformation, including Network 2.0, the multi-year effort to improve the efficiency with which FedEx picks up, transports, and delivers packages in the U.S. and Canada. FedEx expects DRIVE to generate $4 billion of permanent cost reductions in fiscal 2025.
Based in Memphis, Tennessee, FedEx is one of the world’s largest multinational shipping agencies, with a fleet of 699 aircraft and multiple international hub cities.
FedEx Corp. stock (FDX) has been on the rise, gaining 32.5 per cent since the year began, and has risen 12.5 per cent since this time last year. FDX stock opened at C$232.10 per share.
