From a recent FedEx Press Release, FedEx Corp. Reports Second Quarter Earnings
…FedEx has already taken actions to reduce over $1 billion of expenses for all of fiscal 2009, including:
- Elimination of variable compensation payouts
- Hiring freeze
- Volume-related reductions in labor hours and line-haul expenses
- Discretionary spending cuts
- Personnel reductions at FedEx Freight and FedEx Office
FedEx is now implementing a number of additional cost reduction initiatives to mitigate the effects of deteriorating business conditions, including:
- Base salary decreases, effective January 1, 2009: o 20% reduction for FedEx Corp. CEO Frederick W. Smith, o 7.5%-10.0% reduction for other senior FedEx executives, o 5.0% reduction for remaining U.S. salaried exempt personnel
- Elimination of calendar 2009 merit-based salary increases for U.S. salaried exempt personnel
- Suspension of 401(k) company matching contributions for a minimum of one year, effective February 1, 2009
These additional actions are expected to reduce expenses by $200 million during the remainder of fiscal 2009 and approximately $600 million in fiscal 2010. In addition to these actions, each operating company is evaluating other measures should business conditions further deteriorate. …
Interesting. Save money by making cuts at the top.
Leave a Reply