FedEx

History

2023: Dismissal of 10% of executives due to crisis in the country

On February 1, 2023, FedEx, one of the largest logistics companies in the United States, announced a more than 10% reduction in the team of senior managers and directors. This is necessary as part of the reorganization against the background of a decrease in consumer demand.

The changes in the leadership team were announced by Raj Subramaniam, FedEx President and CEO. According to him, the company has embarked on transformations aimed at creating the most flexible, efficient and intelligent supply chain in the world. This process, as noted, is critical to ensuring competitiveness in a rapidly changing environment and requires some complex solutions. FedEx has already begun cutting corporate jobs.

FedEx fires 10% of executives over national crisis

Saying goodbye to longtime colleagues and friends we value and respect is extraordinarily hard. Unfortunately, this is necessary in order to become a more efficient and flexible organization. My responsibility is to take a critical look at the business and determine where we can be stronger, better aligning the size of our network with consumer demand, "said Subramaniam.

The shipment delivery industry experienced a surge during the COVID-19 pandemic amid a surge in the popularity of online retailers. However, in the current economic situation and high inflation, consumers began to save and make purchases less often on online sites. And because of this, the business of logistics companies suffered. As a result, FedEx announced plans to reduce costs by closing a number of offices and reducing the number of cargo aircraft flights. In addition, the company has increased tariffs for the delivery of parcels by 6.9%: these measures have already entered into force. In general, in fiscal 2023, FedEx intends to cut costs by about $3.7 billion.^[1]

2019: Delivery of Huawei packages to the wrong address

On May 27, 2019, it became known that FedEx does not deliver packages ordered for Huawei, but redirects them to the United States.

As told by Reuters in Huawei, two packages that were sent through FedEx from Japan and without permission were addressed to Huawei's office in China, as a result, were delivered to the United States - to Memphis, Tennessee.

FedEx redirects Huawei documents to US to be delivered to China

In addition, the express delivery service tried to make a similar redirection for two packages that needed to be delivered from Vietnam to Huawei offices in Hong Huawei and Singapore. The packages were held at FedEx locations and marked as an "exception on delivery."

This inscription means that some unforeseen event prevents delivery, such as a delay due to customs, a holiday or when no one can accept delivery. FedEx declined to give details on what the exception was in Huawei's case.

All packages contained only urgent commercial documents without describing any technology.

The Chinese corporation said that such actions undermine privacy, so the logistics requirements for partners will be revised. FedEx has already been complained about by regulators in China.

FedEx spokeswoman Maury Donahue told Reuters that the packages were "delivered in the wrong way," and that no one had asked FedEx to forward them.

This is an exceptional case that has affected a very small number of packages. We know about all supply problems and work directly with our customers to return the parcels intended for them, - said Donahue.

Reuters notes that there was no evidence that the incident was related to the intentions of the US government to blacklist Huawei and its "daughters^[2]

Notes