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FedEx Discussions
Anyone see official Buyout letter today ?
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<blockquote data-quote="Ricochet1a" data-source="post: 1008190" data-attributes="member: 22880"><p>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). </p><p></p><p>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. </p><p></p><p>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). </p><p></p><p>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. </p><p></p><p>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). </p><p></p><p>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.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 1008190, member: 22880"] 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. [/QUOTE]
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Anyone see official Buyout letter today ?
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