FedEx, the Memphis-based courier delivery services company, has announced a round of layoffs that will impact a "small percentage" of its workforce, particularly in IT and Finance departments. This move comes as a part of the company's larger effort to cut costs and streamline operations. The layoffs were confirmed yesterday, with FedEx representatives stating that such decisions are not taken lightly and are aimed at realigning functions to better serve the business needs. "We made the difficult decision to reduce a small percentage of positions as we streamline and realign functions," a FedEx spokesperson said in a statement obtained by Action News 5.

Although the exact number of employees affected by the layoffs has not been disclosed, a FedEx spokesperson has indicated support will be provided to those leaving the company. "We are actively working with those affected by these changes to ensure they have the support they need during this transition," the spokesperson told ABC24. Despite the layoffs, FedEx is still a significant employer within the Memphis area, and the ripple effects of these cuts may be felt throughout the local economy.

The company had previously announced a wide-scale reorganization, with plans to merge nearly all of its operating companies into a single entity by June 2024, as part of a $4 billion cost reduction strategy. This reorganization follows a series of cost-cutting measures, including a temporary furlough in the freight division and a reduction of more than 10% of its officer and director team positions, as reported by FOX13. The streamlining is FedEx's response to the escalating operating expenses it has been facing.

In addition to the current layoffs, FedEx had taken other measures to manage expenses, such as the closure of over 90 FedEx Office locations and five corporate offices while also deferring new hires and reducing the number of flights it operates. These measures come as the company navigates through an economic landscape marked by rising costs and a need for greater efficiency. "As we continue responsible headcount management throughout our transformation to one FedEx, we have made the difficult decision to reduce a small percentage of IT and Finance positions," FedEx stated, according to Action News 5.