1.7 billion in cuts!

Discussion in 'FedEx Discussions' started by STFXG, Oct 9, 2012.

  1. STFXG

    STFXG Well-Known Member

    And the details will be tomorrow...

    http://www.nasdaq.com/article/fedex-targets-big-cost-cuts-with-17-billion-plan-20121009-01479
     
  2. TUT

    TUT Well-Known Member

    Here is probably the best article I read so far over all of this, it seems an investor had a private conversation with Fred and Co:

    FedEx chairman Frederick W. Smith backs efforts to boost passenger service in Memphis � The Commercial Appeal

    For Example:

    Sechler: It does to me, but you know, when you say several thousand, that doesn’t sound that significant, but when you say $600 million ...

    Graf: The six hundred’s not limited to voluntary severance. There are some other things that we are doing in there. It’s not just total severance. The vast majority of it is severance. Bob, we need to take care of our folks here who have given us a lot of long service. We need to make it attractive to them so that they’ll feel good and the people who are still here will feel good. That’s our culture. That’s the right thing for us to do. So, it has an acceptable buyback, that’s why we selected voluntary. I know we’re going to get a lot of people who will say, ‘Thank you,’ and be happy because they were ready to retire, thinking about it anyway. We’re now getting almost 40 years old and there are a lot of baby boomers on staff who have been here a long time, I think will be happy and thankful to take the voluntary severance.
     
  3. MrFedEx

    MrFedEx Engorged Member

    Unfortunately, Graf's comment are limited to management and staff positions, not hourlies. We're being "taken care of" through attrition (read targeted elimination), and not being offered voluntary severance.
     
  4. STFXG

    STFXG Well-Known Member

    Voluntary severance = take it or take nothing. Either way you're out.
     
  5. TUT

    TUT Well-Known Member

    Yeah, I giggled a bit on how it was all worded. I knew these words would go over well:
    "Bob, we need to take care of our folks here who have given us a lot of long service. We need to make it attractive to them so that they’ll feel good and the people who are still here will feel good. That’s our culture. That’s the right thing for us to do."
     
  6. StuffItFred

    StuffItFred Member

    Cutting the minimum 20-25+million dollars Freddy dumps in sponsoring Nascar is a good start if he were at all concerned about his workforce.
     
  7. Cactus

    Cactus Just telling it like it is

    Smith is much more interested in looking like a big shot sponsoring Nascar and golf. So much money wasted on stupid stuff, no wonder why express isn't "profitable enough."
     
  8. Goldilocks

    Goldilocks Well-Known Member

    As a woman who has worked very hard for Federal Express and Fedex, I look back and reflexed on everything we have done to make this company what it is today. Each one of us has a story on what we did to make Fedex an Empire. The sacrifises we made, giving up our families during peak, going above and beyond to get that"GOLDEN" package to the customer, having pride where we worked. I raised 3 daughters while working for Fedex. Pregnant and delivering a bulk route was not easy. I sacrifised being with them during their times of need, but was able to provide them with food and shelter. Federal Express took care of us and in return we gave them 100 percent of ourselves. When my Father passed away last november I went to the station and met the courier that had been delivering all of my Christmas, Birthday packages to my father. I shook his hand and thanked him. He delivered my fathers last package, His Ern. My question is, What happened to our company that we believe in and took care of us? Many of us feel betrayed. I will try to stay for another 3 years then off I go and will never look back. The only advise I can give to the employees of Ground, since you are the Golden Rods of Fedex, FAMILY FIRST, because one day you may be writing the same stories as told to you by the employees of Express. God Bless all of you.
     
    Last edited: Oct 13, 2012
  9. bbsam

    bbsam Moderator Staff Member

    I don't think Memphis has any love fest going on for Ground. It's just that Express isn't seen as the "Jewel in the Crown" any more. It's just another opco now, the same as Ground or Freight etc.. And to be honest, that's how it should be.
     
  10. Lordtekk

    Lordtekk New Member

    I disagree with you. You still seem very angry and vindictive towards the Express people.Before there was Ground,Freight,LTL,Critical,Office,there was us. There would be none of you without us,not Fred Smith but the couriers who sacrificed,sweated to make this company what it is today. It will never be another opco it will always be the face of Fedex,period. There are no planes that say Ground on them nor Freight. Overseas there is no Fedex Ground nor Freight from what I know. Fedex Express is WorldWide and never will be an opco. Sorry to disappoint you bbsam. I still get the impression that you still hate us because we are the employees of Fedex, and Ground is treated like the step children of Fedex who are exploited ,I may be wrong but that's my impression.
     
  11. TUT

    TUT Well-Known Member

    Who made who?

    Face it we're all swimming around middle-class somewhere, no need to be jelly of one another and let the top-end laugh away.
     
  12. Lordtekk

    Lordtekk New Member

    Agreed,so now is not the time for us to be at each other's throats. Now is the time to unite and tackle the corporate greed that is polluting our society. Who is with me ?
     
  13. bbsam

    bbsam Moderator Staff Member

    Yes, you are wrong. Express is an opco and Fred Smith sees it as one and treats it as one. The recent release from Memphis even states as much in that the market has changed over the years and FDX acquired opco's to meet the demands of the customer. The customer demand for Express has depleted significantly and the cost side of the equation has risen faster than the profit. I have never since starting with RPS wanted to be an employee, not even looking back to my days with UPS. If there is any hatred whatsoever, it is Express hating Ground. It is Express that tries to insist that Ground is a scam and that Ground is inferior in every way. It is Express that has been prodded by Memphis to become more profitable and has had to bear the burden. It is Express that is being treated more and more like Ground everyday and resents every bit of it. I've known nothing other for 18 years. Listen to how Goldi posts here. Y'all seem to think you deserve better, and maybe you do. Maybe Fred broke promises to you. I, on the other hand, have never been promised any such thing and have had nearly two decades to feel my way through it. I understand your angst, but from a bigger picture, strictly business standpoint, Express is just another opco adjusting to the market.
     
  14. TUT

    TUT Well-Known Member

    This is right, but then knowing/living the history you read here you can see how some feel jilted. In one case the worker has to understand things change and not always for the better, for me even with the bad, if I can logically understand how we got to point B, I deal with it. To me it seems Fedex is like that, at one point all they knew was Express. They had $$$ coming out the yang (even though they profit more today, still struggling with this), they had one team and there was a family'ish type atmosphere. Then they spread out to Ground and LTL and everything. The one company was lost and now it's some bottom-line conglomerate. I get why the Express worker is upset, I get how it happened and if Fedex didn't buy RPS it would have been a different kind of equal pain for Express workers and I get how Fedex is swept up into the W.S. Corporate world, where Investors are the one's you make happy. I just wonder if I'll live long enough for the tables to turn back around?

    Who shed a tear here for the Steel Industry in America? The paper-mills? Etc. Being from the outside you see it coming and blow it off as logical progress etc. But there were people just as upset, betrayed and hurt more along the way. It's all related. So when you get the paycheck, if you feel shorted, you are the responsible person in making a decision of "should I look for something else?".
     
  15. vantexan

    vantexan Well-Known Member

    But you aren't a courier, you are management. Imagine how I felt after years of having to be clean cut to see a Ground driver for the first time with tattoos all over his arms, long earrings, a goatee, and turquoise rings and bracelets. Talk about culture shock. Think I liked being screamed at by a customer because a Ground guy threw a $3000 case of rifles over her gunshop's 8 ft high fence? And as couriers we think it's deplorable that someone doing our job is doing it for so much less with no benefits. I personally feel bad for them. Not for you, it's a good deal for you. You can't talk about Big Oil's profit motive on one thread and avoid that 800 lb gorilla here just because it benefits you. The fact is that we could have a better economy right now if so many millions weren't being forced to live on subsistence wages so that these large corporations could hoard profits for themselves. Big Oil pays their people well by the way.
     
  16. Goldilocks

    Goldilocks Well-Known Member

    You have never and never will have that purple pride that we had...never! You dont have a clue....This was not a regular company, It was Federal Express, that took care of its people.
     
  17. bbsam

    bbsam Moderator Staff Member

    ^^^^^^^witness Lordtekk from where the hate cometh^^^^^^^
     
  18. bbsam

    bbsam Moderator Staff Member

    Here we are again oddly oppposed. You can't defend the oil companies and spit at Fedex because it suits you better. I on the other hand am not against the oil companies, just the foolish notion that the government is causing high prices. Nor (as I have said before) am I all that pro Fedex. I do enjoy profitting from my long, hard years as much ass the next and am glad to see Ground growing.
     
  19. vantexan

    vantexan Well-Known Member

    Who is defending, who's spitting? You do know that most oil companies don't have their own refineries and sell their oil to refining companies who then sell the finished product? It's a bit more complex than just Big Oil this or that and we can't have an honest conversation if you won't acknowledge the taxes, regulations, and restrictions placed on oil companies, as well as coal and nuclear power, by this administration that have greatly contributed to current prices. But hey, it's an election year, treat us like mushrooms, keep us in the dark and feed us B.S..
     
  20. bbsam

    bbsam Moderator Staff Member

    Corporations will sell their goods and services at the greatest profit in every market with taxes and regulation all factored in.