FedEx to offer buyouts with up to 2 years pay
NEW YORK (AP) — FedEx will be offering some employees up to two years pay to leave the company next year.
The voluntary program is part of an effort by the second-biggest package delivery company to cut annual costs by $1.7 billion within three years.
Employees who volunteer for the program will receive four weeks of pay for every year of service, capped at two full years of base pay.
Those eligible will be notified in February, and have until April to apply. They'll be informed in May if they are accepted. The first wave of employees will leave on May 31, the last day of FedEx's fiscal year.
FedEx, which is based in Memphis, Tenn., is responding to a slow-growing global economy. It also plans shed aircraft and underused assets to cut costs.
The voluntary program is part of an effort by the second-biggest package delivery company to cut annual costs by $1.7 billion within three years.
Employees who volunteer for the program will receive four weeks of pay for every year of service, capped at two full years of base pay.
Those eligible will be notified in February, and have until April to apply. They'll be informed in May if they are accepted. The first wave of employees will leave on May 31, the last day of FedEx's fiscal year.
FedEx, which is based in Memphis, Tenn., is responding to a slow-growing global economy. It also plans shed aircraft and underused assets to cut costs.
Great, let's blame unions and the President. The pure fact of the matter is that (A) FedEx needs a strong global economy to prosper, not just in the US, and (B) the company is still making a substantial profit.Â
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FedEx is making money, they just want to make more. So they are trimming payroll. Sounds more like corporate greed to me.
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 @MVDad Of course they are trimming payroll; it's one of the easiest costs to control for a company.
In case you did not know: FedEx is a for-profit company, not an employment program. . They see worse times on the horizon and are reacting early to make course corrections.
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Besides, these are not lay-offs. No one is forced to take the early buy-out.
Of course, if not enough employees to take the offer, there will most likely be lay-offs, after all.
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Don't criticize the company for doing the right thing for their shareholders and making it easy for employee who want to leave to do so and get a bonus to boot. Four weeks of pay for every year of service is about DOUBLE what companies usually pay in cases like these.
 @MVDad Making money isn't a crime and they are offering a very generous payout.
Funny, In some parts of the news here the economy is reported all groovy and on the upswing. Then a reality check sets in- companies aren't doing that well.
Pretty good deal for the employee of 12+ years if there is enough ambition to start something new.Â
Let "The Downsizing" begin!
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If only we could tax the corporations and wealthy (those that make more than you or me?) more while simultaneously creating a Utopian health-insurance meteor designed to impact our economic Yucatan.
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Then we will live in the land of milk and honey! Oh, and cell-phones provided ... at NO cost to you.
 @Getov Mylon You forgot the part about it being the union's fault, oh wait.....In other news, UPS Teamster drivers aren't being laid off. Hmmmm.
 @T_BONE_WALKER  @Getov Mylon NO one is being laid off. Where'd you get that idea? These are VOLUNTARY early buy-outs, extremely generous, too. Layoffs may follow later, but THESE are not lay-offs.
 @T_BONE_WALKER  @Getov Mylon Really? http://www.youtube.com/watch?v=tVWcF9bx44Y
 @holysprt Thank You. I stand corrected.