FedEx to cut 1,700 jobs, close 100 centres

FedEx Corp plans to cut 1,700 jobs from its freight division as it closes 100 service centres, reported Pittsburgh Post-Gazette.

Company spokesman Jess Bunn said FedEx was not releasing a list of facilities that were affected, but that it has freight facilities in New Stanton, Richland and McKees Rocks.

Memphis, Tennesse-based shipping giant FedEx reported first-quarter net income more than doubled, but that projections for the second quarter and full year fell shy of Wall Street expectations.

The FedEx Freight division lost US$16 million. The company announced it would combine its FedEx Freight and FedEx National less-than-truckload operations on January 30.

The 1,700 job cuts represent about five percent of the freight division's employees. Overall, FedEx has about 280,000 employees.

FedEx earned $380 million in the first quarter compared with $181 million a year ago. Revenue rose 18 percent to $9.46 billion.
(Source:www.cargonewsasia.com)