FedEx to fold Canada contractor-based Ground unit into Express
2023.06.20 15:13
© Reuters. People pass a FedEx Office store in Toronto, Ontario, Canada, July 21, 2017. REUTERS/Chris Helgren
By Lisa Baertlein
LOS ANGELES (Reuters) -FedEx on Tuesday said it will merge its contractor-based Ground delivery operations in Canada into its company-operated Express unit and convert contractors into employees.
The move, set to phase in starting in April 2024, comes as the global delivery company is revamping operations to boost profits and better compete with rivals like United Parcel Service (NYSE:) , Amazon.com (NASDAQ:) and regional delivery firms.
FedEx (NYSE:) made a similar change in the U.S. states of Alaska and Hawaii last year.
Still, the company said there will be U.S. markets where packages shift from Express to Ground, its outsourced delivery arm.
Memphis, Tennessee-based FedEx in April said it planned to combine the two delivery units as part of its wider effort to slash $4 billion in permanent costs by the end of its 2025 financial year. That announcement came almost a year after activist investor D.E. Shaw pushed for change and won two additional board seats.
