More Details Maybe Tomorrow

[MassWineGuy]

FedEx due to outline billions in cost-savings on Wednesday (NYSE:FDX)

FedEx Corp (FDX) is set to offer details on its plans to reduce costs by billions of dollars in a DRIVE Program Update on Wednesday.

seekingalpha.com

 

[dezguy]

"So think of that as moving the same traffic with less assets and resources."

Pretty well tells you what the company isn't telling its employees.

 

[MrFedEx]

"So think of that as moving the same traffic with less assets and resources."

Pretty well tells you what the company isn't telling its employees.

They've already told us and the business media several times what they're doing. I don't expect any major changes from what's already been stated lest investors become panicked. From what I've been reading, the investment community loves all of this, because cutting jobs and decreasing the operating ratio (more profit) all make a stock more attractive. What they don't know is what we already know, and that is the underlying turmoil and logistical challenges of making it work. Never mind the eventual legal issues. Most investors only look at numbers and do not consider underlying factors. They are generally ignorant about how the transportation sector functions.This all sounds great on paper.
If investors had an inner view of how the FedEx Titanic really functions and that Raj and Friends are pulling a big scam, they'd be abandoning ship, as they should. Not informing employees is egregious, but they don't matter as has been aptly demonstrated for many years now. They know exactly what they're going to do, and are intentionally withholding the obvious from people who should know better by now.
IMO, this whole deal will implode within a year, and Raj will be "Leaving to pursue other opportunities".

 

[MassWineGuy]

Very aptly stated.

 

[fedx]

FedEx said not too long ago that they are going to "sweat the assets." That means doing more with less. Good to stockholders, which FedEx makes it clear that's who it's for, but not good for employees.

 

[Cactus]

Hopefully there will be a big walkout of employees or a huge shortage once a big percentage find greener pastures. Then Raj can explain the shortcomings of his big pipe-dream to stockholders after he downs a quart of Jack Daniels at lunch.

 

[59 Dano]

If investors had an inner view of how the FedEx Titanic really functions and that Raj and Friends are pulling a big scam,

Too bad 60 Minutes ignored your offer to expose the entire company. THEY MUST BE IN ON IT!

 

[yadig]

Too bad 60 Minutes ignored your offer to expose the entire company. THEY MUST BE IN ON IT!

It’s gonna be good for the company but not the employees. How’s that gonna work out in the long run?

 

[59 Dano]

It’s gonna be good for the company but not the employees. How’s that gonna work out in the long run?

Probably for the better.

 

[yadig]

Probably for the better.

U hope. I’m not so sure

 

[Cactus]

Probably for the better.

You’re a paid shill. You have to say that.

Oh, oh Raj is calling you. He said jump! Now ask him “how high?”

 

[Aquaman]

Probably for the better.

I’d argue that this company was doing better when it cared about its employees. PSP as corny as it was, actually worked. Happy people delivered better service which resulted in more profit. If UPS is smart they’ll make their drivers happy with this next contract regardless of volume. It will come back. And when it does FedEx will be such a mess that they’ll just about put us out of business.

 

[Serf]

I make service on bus p1 and I don’t have late or missed pickups. I do this all for a net take home salary of roughly 44k. Part of me wants to get smoked in the mele’ so I can just go deliver plumbing supplies for a mom and pop for the same money. And prob a rad Christmas party.

 

[AB831]

I’d argue that this company was doing better when it cared about its employees. PSP as corny as it was, actually worked. Happy people delivered better service which resulted in more profit. If UPS is smart they’ll make their drivers happy with this next contract regardless of volume. It will come back. And when it does FedEx will be such a mess that they’ll just about put us out of business.

I’ve never understood why fedex acts like morale isn’t a real thing.

 

[yadig]

I’ve never understood why fedex acts like morale isn’t a real thing.

The morale is great if you’re in the top tier or a shareholder.

 

[AB831]

The morale is great if you’re in the top tier or a shareholder.

For now

 

[bacha29]

Probably for the better.

Provided that your job is spared or you're not replaced by a 17 year old tech nerd coming in after school to do your job for 12 bucks an hour.

 

[Cactus]

Provided that your job is spared or you're not replaced by a 17 year old tech nerd coming in after school to do your job for 12 bucks an hour.

Dano’s mom is gonna let Raj and Fred have an earful when that 17 year old gets hired. Oh look out!

 

[Mutineer]

They've already told us and the business media several times what they're doing. I don't expect any major changes from what's already been stated lest investors become panicked. From what I've been reading, the investment community loves all of this, because cutting jobs and decreasing the operating ratio (more profit) all make a stock more attractive. What they don't know is what we already know, and that is the underlying turmoil and logistical challenges of making it work. Never mind the eventual legal issues. Most investors only look at numbers and do not consider underlying factors. They are generally ignorant about how the transportation sector functions.This all sounds great on paper.
If investors had an inner view of how the FedEx Titanic really functions and that Raj and Friends are pulling a big scam, they'd be abandoning ship, as they should. Not informing employees is egregious, but they don't matter as has been aptly demonstrated for many years now. They know exactly what they're going to do, and are intentionally withholding the obvious from people who should know better by now.
IMO, this whole deal will implode within a year, and Raj will be "Leaving to pursue other opportunities".

As much as I would very much like to watch FedEx implode, I don't think it will.

Most of the management critters will be high-fiving each other and keep their office jobs. The employees who actually work for a living will be replaced by people who work for much lower compensation.

Service will suffer accordingly. Popping-fresh doorbell camera footage of knuckle-dragging FedEx drivers behaving badly will be all over the internet daily. And that will be OK. Because I believe that instead of aiming 'high', FedEx is intentionally aiming 'low'.

I believe that due to advancements in electronic technology and a surplus of unskilled labor, this industry will function 'good enough' with a poorly paid, high turnover workforce.

 

[Mutineer]

I’ve never understood why fedex acts like morale isn’t a real thing.

It sucks to be in a workplace with low morale. I pity those in that situation.

And FedEx is being run by a person who's origins are from the third-world.

This result should not be a surprise. The Silver-Spoon shareholders interrupt their caviar fights only long enough to cheer and concur.

"The beatings will continue until morale improves."

-Raj.