Income at Memphis-based shipping giant FedEx is down $5 million, about 1 percent less than last year. The first quarter of FedEx’s fiscal year ended August 31. The company announced earnings for that quarter during a phone call this morning and lowered its projections for the rest of the year.
To explain this, FedEx founder Fred Smith pointed to the FedEx Express division. Income at FedEx Express fell 28 percent.
Memphis-based shipping-giant FedEx is considered to be a bellwether of the global economy because it ships a cornucopia of goods all around the world. The voluntary buyouts for some FedEx Express employees are part of larger cost-cutting efforts at the company.
In a story that is now legendary, FedEx founder Fred Smith argued for the need for reliable, overnight delivery in a term paper he wrote at Yale. Smith built his company, which raked in $42.7 billion last year, on that idea.
At The Mail Center on Madison Avenue, Mark Weber pours foam peanuts into a box of Christmas gifts. Weber is the only one working this Saturday. He’s also the owner. There’s a steady stream of customers, but Weber can handle it. He says years ago the shop was more frenetic.
“At various times we’d ship 400 or 500 boxes a day out of here,” Weber said. “And let me tell you—with six or seven employees running around—and peanuts everywhere—it was nuts! Pandemonium!”