FedEx is just another company that has surrendered to indolence (just like the general public).

[Meat]

Why bother to innovate, or make a long-term commitment to your employees when you can just allocate billions to stock buybacks, rely on a business model that treats employees like garbage, or expand inorganically via ill fated acquisitions?

It’s sad to see a once proud company suffer the same fate as GE (lamentably there will be others).

I guess corporate American is just following the lead of the general populace, though. Everyone seems to want to take the easiest way without putting in any effort. Is it just me or does half the general public suck at their jobs due to a lack of effort?

Is anyone confident that the new leadership at X will show a propensity to innovate, or cultivate a long-term relationship with the employees, which may actually inspire them to make the company successful?

 

[zeev]

No chance

 

[yadig]

I don’t see that from my local ups drivers.

 

[cosis]

They are doomed

 

[yadig]

They are doomed

It’s definitely not looking good. I believe that they don’t even know what to do at this point.

 

[zeev]

Raj said on the earnings call , they have new cutting edge technology to save the day. Groundhog Day is real

 

[bacha29]

Raj said on the earnings call , they have new cutting edge technology to save the day. Groundhog Day is real

And so is the Easter Bunny, Big Foot and the Great Pumpkin. Yesterday they announced a 6.9% rate increase along with an additional 4 billion dollars in cost cutting. News didn't help the stock. Closed down another 3+% to another new 52 week low.

 

[Meat]

And so is the Easter Bunny, Big Foot and the Great Pumpkin. Yesterday they announced a 6.9% rate increase along with an additional 4 billion dollars in cost cutting. News didn't help the stock. Closed down another 3+% to another new 52 week low.

What area will the costs be cut from?

 

[zeev]

Express raise healthcare insurance, cut overtime, Freight they never mess with because of union threat, Ground has leverage of larger contractors, Express has big bullseye.

 

[NC man]

Stocks in general going lower, Powell says more rate hikes to come. We need to feel some pain he says. Probably good time to buy one of those inverse SP. 500 funds. I tried to at my VG account and they won’t let you! Not the 401, brokerage account.

 

[bacha29]

Express raise healthcare insurance, cut overtime, Freight they never mess with because of union threat, Ground has leverage of larger contractors, Express has big bullseye.

One of the things mentioned was cutting flights out of Asia. Other than that I wouldn't expect major moves until after peak. In the meantime it will likely be a rather large number of more subtle moves that won't create a lot of media attention. At least not until they have everything in place and are ready for the media to bite into it.

 

[MassWineGuy]

My manager thinks Response could be a prime candidate for elimination. Just his opinion. Makes sense, though. All those mid-day flights add up.

 

[Serf]

Express raise healthcare insurance, cut overtime, Freight they never mess with because of union threat, Ground has leverage of larger contractors, Express has big bullseye.

IMO, for ground to get up to capability to take everything from express that is 2 or 3 day. And not get crushed….is the only way express becomes efficient. FO, P1, SO, only.

 

[McFeely]

My manager thinks Response could be a prime candidate for elimination. Just his opinion. Makes sense, though. All those mid-day flights add up.

Mid-day flights as well as a ton of OT for the stations that don't have drivers for Response. We have about 1/3 of our couriers shuttle back to the station for the sort and then shuttle freight to their loops. I can't imagine how much Response destroys our station SPH and OT goals, but it easily adds about 1-2 hours daily for every courier it affects.

 

[Basement Dweller]

Fedex saw how Amazon became the juggernaut in the industry and decided to copy Jeff Bezos' homework. Doesn't seem to be working when most of your workforce decided to retire to not deal with Raj's bull.

 

[olroadbeech]

Affirmative Action has spread over the whole workplace. First it started with race, then gender, then spread thru every group of humans real or imagined.

There are few if any standards anymore. If a company tries to encourage of enforce higher standards they are threatened witha lawsuit.

What are companies supposed to do in these cases?

It's happening at UPS also. Standards lowered. No one caring.

It's a race to the bottom.

 

[fedx]

One of the things mentioned was cutting flights out of Asia. Other than that I wouldn't expect major moves until after peak. In the meantime it will likely be a rather large number of more subtle moves that won't create a lot of media attention. At least not until they have everything in place and are ready for the media to bite into it.

I think we'll see more of a merger between Express and Ground. The only question is will Express takeover Ground or Ground takeover Express and the contractor model? The smart move would be for Express to takeover Ground and make them company employees. This is the smarter solution in the long run. However, we all know how cheap/frugal/short sighted FedEx is, so I would expect Ground to takeover Express and then eventually go out of business. Although they could just ramp up their "last mile optimization" plan dumping more and more stuff on to Ground until Express has virtually no parcels to deliver themselves-essentially doing away with Express through attrition.

 

[Gone fishin]

I think we'll see more of a merger between Express and Ground. The only question is will Express takeover Ground or Ground takeover Express and the contractor model? The smart move would be for Express to takeover Ground and make them company employees. This is the smarter solution in the long run. However, we all know how cheap/frugal/short sighted FedEx is, so I would expect Ground to takeover Express and then eventually go out of business. Although they could just ramp up their "last mile optimization" plan dumping more and more stuff on to Ground until Express has virtually no parcels to deliver themselves-essentially doing away with Express through attrition.

That’s definitely not happening

 

[Meat]

There are few if any standards anymore. If a company tries to encourage of enforce higher standards they are threatened witha lawsuit.

Do you have a real life example?

 

[It will be fine]

That’s definitely not happening

That’s the plan as announced. You really think shareholders would stand for moving Ground freight to Express and the additional capex requirements to do so? No chance.