Anyone see official Buyout letter today ?
- Thread starter **Fred
- Start date
And?
Just went to Google News and read several articles. Said company hasn't determined exactly yet who'll be eligible and that these are voluntary. One article said buyout won't be offered to anyone who handles pkgs or supervises them. Looks to be targeting support staff. Also actual buyout won't happen until next May. Apparently wants them gone before qualifying for a year's payment in PPP.
Rhoderunner
Well-Known Member
vantexan;1008140 Looks to be targeting support staff. [/QUOTE said:
I doubt that many will take a buyout in this economy unless it's extremely generous. This being FedEx pretty unlikely.
Ricochet1a
Well-Known Member
This is just public confirmation of the "scoop" that came out a couple of months ago.
NO BUYOUTS for operational employees - ESPECIALLY wage employees (good ol' attrition will happen there...). The buyout will be TARGETED at salaried support staff, primarily in Memphis. There won't be any sort of "formula" (years of service plus age), but rather buyouts will be offered to targeted positions whose job function is seen as being unnecessary or un-cost effective.
They'll make a further announcement in October, but this announcement is what I hinted at about a week ago (Memphis is "buzzing").
What wasn't stated (but is obvious) is that employees who are in targeted positions who DON'T take the buyout, will be forced to find another position in Express in a non-targeted position (position that will not be eliminated), or else get the ax. This is going to be a repeat of the 2004 reduction where people who are occupying positions that are targeted for elimination will need to either get out (take the buyout) or find an open position elsewhere in Express (most likely in an operational level position) - or get laid off at some unspecified point in the future.
And yes, Express has laid off salaried employees before, the "no lay off philosophy only applies to wage employees.
NO BUYOUTS for operational employees - ESPECIALLY wage employees (good ol' attrition will happen there...). The buyout will be TARGETED at salaried support staff, primarily in Memphis. There won't be any sort of "formula" (years of service plus age), but rather buyouts will be offered to targeted positions whose job function is seen as being unnecessary or un-cost effective.
They'll make a further announcement in October, but this announcement is what I hinted at about a week ago (Memphis is "buzzing").
What wasn't stated (but is obvious) is that employees who are in targeted positions who DON'T take the buyout, will be forced to find another position in Express in a non-targeted position (position that will not be eliminated), or else get the ax. This is going to be a repeat of the 2004 reduction where people who are occupying positions that are targeted for elimination will need to either get out (take the buyout) or find an open position elsewhere in Express (most likely in an operational level position) - or get laid off at some unspecified point in the future.
And yes, Express has laid off salaried employees before, the "no lay off philosophy only applies to wage employees.
59 Dano
I just want to make friends!
That's consistent with what I've heard over the past few weeks. There's a surprising amount of overlap in support staff roles and the rumor is that as many as 3500 will be offered buyouts before all is said and done.
Highly unlikely to be generous. The one article says that those getting buyouts don't handle packages and don't supervise people that handle packages. That would rule out quite a few of those 115,000 to 158,000 people they said work for Express.
But who do they want gone? They must have an idea of what it would take to get those people to take the buyout. It may not be generous, but it just may be enough to get their butts out the door.
If the OP really has seen an official letter, I would like to know the details. I am tired of the rampant speculation and would like to get on with it already.
So let me pick your brain here R1A. Why the announcement today? Why not wait until October? And why the press, and not internally first? So far I have seen generic business people comment, not the analysts that deal directly with our stock. If the analysts come out and say it's not enough it could hurt the stock. Are they testing the waters?
Sorry , while I start to read the letter from David Bronczek at the check out room the CSA took it out and walk away to copy for their own . I can catch just a little bit detail about MD or who work in the office position will not eligible for buyout . I'll try to get it scan and post it here ASAP .
Ricochet1a
Well-Known Member
Everyone in Memphis knew this was coming, so FedEx Corp management knew that had to make some announcement, just to help reduce some of the anxiety that has been building over the past few months. Anxious people don't perform well, they are too worried about losing THEIR job. This announcement helped to reduce the level of anxiety and gets people back to thinking about their work rather than thinking about whether they'll get axed in October (this is what the fear was, impending layoffs in October).
There has been an "internal" announcement, but don't expect to see anything at operational level - the announcement is focused SOLELY at support staff, primarily in Memphis.
The effect on FedEx's bottom line (in particular Express'), will only be about 2% - nothing to "sneeze at" - especially when Express only managed a 4% profit margin (the 2% will go directly to Express' profit margin once the employees are gone).
The stock analyst haven't had time to digest the future impact on FedEx stock price - so they won't comment till they get something more detailed to sink their teeth into. All that the "market" knows now, is that Express will shed about 2% of its employees (NOT operational employees or department heads) - so this is viewed as merely "trimming the fat" as occurs in any corporation from time to time.
What the market has completely missed (since they don't know the particulars), is that Express intends to gradually reduce the hours of its wage employees as volume is shifted over to Ground (initially by reducing service offerings by Express - having the customers do the "shifting", then finally by actually shifting of delivery of deferred volume over to Ground).
The July "From the Chairman", actually put down the blueprint of what FedEx is going to do (I commented on this a week ago - hoping to get people to think about it). What you are seeing, is the gradual implementation of that master plan of FedEx's. Everyone has been warned this is coming... it is why I post.
MrFedEx
Engorged Member
What R1a said...support staff and some unspecified salaried positions. No courier buyout.
Amen!
59 Dano
I just want to make friends!
They were saying in May that what we are hearing about now is what would happen. It's not exactly a surprise.
packageguy
Well-Known Member
I guess they want rifffff raffff out, I think they should start with frrrreeeddd sssmmiittthhh. lol
MrFedEx
Engorged Member
He needs to lead by example. His caviar budget exceeds that of most large stations. He is a drag on profitability, and I bet we could get a contract Chairman from China who would cost 40% less. There's an excellent guy from Beijing named**** Yu Fred.
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Mr Fedex
Banned
Can we tone it down with the racism please?
MrFedEx
Engorged Member
Perhaps you need to get an understanding of racism. My track record speaks for me. Try something else.
