Yes, I have read many articles on the announcement. Express and Services were mentioned in all of them, not Office.
Office is included in the reductions. Office is a "ship without a rudder" at this point, being kept afloat primarily due to its intended role in the future to become the primary "face" of FedEx for over-the-counter sales of both Ground and Express product. Many of the people who work "for Office" are technically under FedEx Services. Supposedly management positons are immune to the reductions, only support staff are going to be cut - but when it comes to Office, there are independent stories about them eliminating an entire layer of management. There are other posters here who are more informed about that than I about this coming reduction.
Also the rumors I was talking about being "out there" was not what I read here, it's what I hear at work on a daily basis about buyouts.
The rumors about buyouts even reached here - go back in history and look it up. There were many here that were speculating (hoping beyond hope) that hourlies in operations would be offered some form of buyout. Just more wishful thinking on their part. With the announcement, the speculation came almost to an abrupt end - as Memphis wanted it to.
But I do believe it is happenning to businesses everywhere, not just FedEx.
Here's where you are wrong. In most circumstances, corporations that are looking to transform and cut, do a detailed study of where they want to be (FedEx has done that - back in the middle part of the last decade), run studies and analysis regarding the prospects of the company after the proposed reorganization (FedEx has done that), discuss the intended change internally and make a decision that the change is really what is needed (FedEx has done that), then
get the pain over with as quick as possible and make the change rapidly (FedEx WON'T do that).
The reason most corporations perform any decided upon "downsizing" quickly, is to get the uncertainty over and done with among its employees. A long, drawn out process of gradual change (where the employees never know if they will be axed in a few months) destroys morale and is a detriment to productivity (employees spend time talking and worrying among themselves if they are going to get the ax next). Just from your statement, this has and is occurring in Memphis (I already knew it was happening, I wrote about it here).
When corporate downsizing is to be done (in most instances), the change is announced, those to be eliminated are shown the door, then the remaining employees are brought into some meeting and told, "Relax, we are DONE with the cuts. Get back to thinking about your work and we'll move forward". Anxiety is eliminated and those that are left focus on getting the company back on track. FedEx can't do that...
With the scope of change FedEx is planning for Express (and is currently performing), if the entire scope of the change was announced, say 3 years ago - there would've been MASSIVE problems for Express. This is due to one reason, threat of unionization among the hourlies, primarily the Couriers.
If Express would've announced 3 years ago that: 1) it intends on shifting the delivery of non-overnight volume over to Ground, 2) that it intends on making the Courier job a primarily part-time position, 3) that it intends to essentially freeze hourly wage progression to merely being adjustments for inflation, 4) that it will change work conditions, shifts and goals to make leaving Express for experienced Couriers a desirable option, 5) that it will introduce a software program which will render the experienced Courier an unneeded positon (DRA), 6) and finally that it will introduce a ground fleet that is predominently Sprinter type vehicles (400-450 cu ft capacity, vs. 700 cu ft capacity for current W700s)....
even the most avid consumers of purple KoolAid would've realized that Fred has placed a target on them, and they had better do something about it.
FedEx has "wisely" avoided doing this. The change in operations is being done very slowly, so slowly in fact, that the operational mangers are just now being officially clued into what is going to happen in the near future. The vast majority of the Couriers are completely clueless. They still believe that they will have a career with Express 10 years from now, and they have nothing to fear. The Couriers in their 40's and 50's do realize something is up, but they don't want to start rocking the boat too much, for fear of losing their job while the economy is doing poorly.
Fred has planned his strategy, perfectly.
I have not seen any numbers mentioned anywhere in print besides here.
Do a search of business journals - they usually have more detailed information. In a few weeks, Memphis will give a more exact number, so there isn't much point in spending time trying to track down a more precise number - it will be provided shortly.
Do you know how many non-functional salaried positions there are in Express?
While the people I communicate with would have a better idea, I focus on what is going to happen on the operational side. That is where my sympathies lie, I'm not too worried about those in Memphis.
And yes, these rumors have been floating around for a long while. I also believe that if they do not get the number of people they want to take the buyout, layoff maybe coming.
You show your wisdom... the buyout is part of the carrot and stick. Those who refuse to take the carrot in April/May, will most certainly get the stick. Again, I've written about that very thing here. The buyout is TARGETED. It won't be "open season", SPECIFIC positions will be targeted for elimination and the individuals holding those positions will be offered the buyout. While is hasn't been publically admitted yet, those that refuse the buyout, will be shown the door before the start of the next Express FY.
Just for those who don't know, when someone accepts a buyout they forgo any right to unemployment. The buyout has a clause within it that specifies the individual is voluntarily terminating their employment in consideration of payment. The buyout saves Express the unemployment liability. I've written on this prevously...
Some saying that they may go for another round of buyouts before that though. Last time they did this back in 2003 at Express, the pot was so sweet, they lost more people that they wanted to.
There was an article in the CA that made essentially the same comment - the reductions this time around will look like the 2003-04 reductions in term or total number of employees. What will be different, is the targeted nature of the buyout. Given specific positons will be targeted, those occupying the positions may have between a year and upwards to 25 years in - so the buyout formula will be a rather complex blend of a lump sum PLUS an amount reflective of years of service, to encourage ALL targeted employees to accept the carrot.