Raj Subramaniam, FedEx Corporation, speaks at the US Chamber of Commerce Aviation Summit in Washington, DC on March 5, 2020.
Kristoffer Tripplaar Sipa via AP Image
FedEx is cutting more than 10% of its officers and directors, CEO Raj Subramaniam announced Wednesday, as the company cuts corporate jobs to cut costs amid consumer demand.
“Unfortunately, this is a necessary action to become a more efficient and agile organization. It is my responsibility to look critically at the business and determine where we can be stronger by better aligning the size of our network with customer demands,” Subramaniam said in a letter to FedEx team members. .
FedEx shares were up 2% in mid-day trading on Wednesday.
The layoffs come as shipping momentum slows after the pandemic’s e-commerce boom.
The company raised shipping rates by 6.9% in December in another move to offset the consumer slowdown.
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