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FedEx Offers Buyouts

Express unit's salaried employees eligible
as company resizes to improve profitability

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As it begins its 2004 fiscal year, FedEx Express announced it will offer early retirement and buyouts to mid-level employees. Approximately 14,000 of FedEx Express' 116,000 U.S.-based employees meet the eligibility requirements for one of the two plans.

FedEx spokeswoman Sandra Munoz said she could not specify the number of employees the company expects to take advantage of the offers. But Satish Jindel, principal of Pittsburgh-based SJ Consulting estimates that the number is between 2,000 and 3,000.

Memphis-based FedEx Express, FedEx's largest operating unit, announced the retirement and severance packages on June 2 after business closed. The company began its new fiscal year on June 1.

"We think that these plans are very generous and we think that employees are going to find them attractive," Munoz said. "That does not mean that we're getting rid of people. It doesn't mean we're getting rid of 14,000 jobs."

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