FedEx says it's rerouting more than 600,000 packages a day because it can't find enough staff to process them - Yahoo
FedEx is rerouting more than 600,000 business packages each day because it doesn't have enough staff to process them, FedEx president and COO Raj Subramaniam said.
The labor shortage was the company's "biggest issue" and the "key driver" of its lower-than-expected results, he said at the company's earning call Tuesday. It cut its yearly outlook, causing FedEx stock to tumble to its lowest in a year.
Subramaniam said that the labor shortage, which is hitting multiple US industries, had cost FedEx an estimated $450 million in the quarter ended August 31 because of wage rises and inefficiencies. Most of this came from FedEx Ground, the company's service that ships packages to businesses, he said.
FedEx is rerouting more than 600,000 business packages each day because it doesn't have enough staff to process them, FedEx president and COO Raj Subramaniam said.
The labor shortage was the company's "biggest issue" and the "key driver" of its lower-than-expected results, he said at the company's earning call Tuesday. It cut its yearly outlook, causing FedEx stock to tumble to its lowest in a year.
Subramaniam said that the labor shortage, which is hitting multiple US industries, had cost FedEx an estimated $450 million in the quarter ended August 31 because of wage rises and inefficiencies. Most of this came from FedEx Ground, the company's service that ships packages to businesses, he said.