These people are complete idiots. They should be on Wall Street where they could launch a global recession, take billions from taxpayers in order to stay in business and then hand out bonuses to reward everyone for a lousy job. Heck, they could even find people out there who could support such a half baked idea. What is FexEx thinking?
The package delivery company’s earnings appeared to beat analyst estimates by a penny, and FedEx reaffirmed its full-year outlook. Shares rose more than 3 percent in premarket trading.
“Our financial performance is increasingly being challenged by some of the worst economic conditions in the company’s 35-year operating history,” Frederick W. Smith, FedEx CEO, said in a statement.
The company said it is continuing to take measures to make it competitive and “to help offset weak demand, protect our business and minimize the loss of jobs,” Smith said.
FedEx plans $1 billion in cuts that include a hiring freeze, cutting labor hours and line-haul expenses, cutting base salaries and reducing Smith’s salary by 20 percent. In addition, other FedEx executives are taking pay cuts of 7.5 to 10 percent while the company also is planning a 5 percent salary reeducation for other salaried exempt personnel.
It also is eliminating merit increases for 2009 and is suspending contributions to its 401(k) plan.