FedEx (NYSE:FDX) is looking to cut more than 10% of its officer and directors in an effort to shave off costs.
The company aims to reduce expenses this year by around $3.7 billion. These layoffs are expected to impact around 2% of FedEx’s 547,000 employees. The cost cutting measure will help the company become more efficient and agile as it looks to better cope with a tough economic situation.
The news sat well with investors, who generally saw this as a positive move by the shipping company. Its shares rose a little more than 4% following the news.
FedEx’s workforce will drop to around 535,000 employees, more or less on par with direct competitor UPS.