FedEx Corp (FDX)

[somtinfishy]

No, No....loss of business is NOT the case specifically….it’s more like redirection or societies mode shift of how they ship. The short version is here in the US, FedEx has dramatically improved their Ground shipping lanes in some cases 40+% faster than UPS. With the improved transit times on packages, customers are exercising their options/shipping solutions and choosing Ground over Express shipments mostly due to less cost at a similar or close enough transit time. Although this sounds like loss of revenue, the yield on a ground shipment is DRAMATICALLY higher than overnight thus, total revenues should be higher. As for the “buy outs”, it’s nothing more that organizational evolution in FedEx Express to “right size” the employee base, which has never been done, and restructure the Ground side to fit current and projected growth. As a matter of fact, last week FedEx Ground announced job role/title restructures in which NO ONE lost their jobs OR base salary. If anything, it was a clear move to minimize internal employee costs moving forward into what could potentially be the company’s highest years of growth. Of course, all of this info is a statement my opinion.