Large-scale job losses have been announced at FedEx and the US Postal Service (USPS) in the latestround of cost-cutting in the international express and postal sectors. Several thousand staff seem
likely to lose their jobs in total.FedEx expects to shed about 1,000 jobs under its new $1 billion cost reduction measures, aspokesman told US media. In its Q3 results, released on March 19, the company did not disclose theextent of the planned job cuts.
FedEx announced on March 19 it plans to make further reductions in personnel and workinghours as well as reduce capacity in its Express and Freight networks, extend pay cuts to non-USstaff, and make other spending cuts. The overall savings target is for $1 billion in financial year2009/10, while there will be charges of about $100 million in the March – May fourth quarterof the 2008/09 year.
Meanwhile, USPS announced that it is taking “bold actions” to cut costs, including closingadministrative offices, eliminating positions and offering early retirements, in order to save morethan $100 million annually.
The world’s biggest postal operator will offer early retirement to nearly 150,000 of its646,000 employees. About 9,000 workers accepted a similar offer last year. In addition, USPS willeliminate more than 1,400 mail processing supervisor and management positions at nearly 400facilities around the country, and reduce district level administrative staff positions by 15%. Theoverall number of job losses could reach 3,000, according to CNN.
The Postal Service will also close six of its 80 district offices around the country, andtransfer their responsibilities to other district offices nearby. The measure will not adverselyaffect customer service, mail delivery, Post Office operations or ZIP Codes, the US postal operatorstressed.
USPS noted that it had already taken “very aggressive cost-cutting actions” over the lastyear, including cutting 50 million workhours, halting construction of new postal facilities,
freezing managerial pay, cutting head office and area office staffing levels by 15%, andreorganising mail delivery routes to reflect lower volumes.
