FedEx details employee buyout plan

Washington DC
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FedEx will begin to seek employees' requests for voluntary buyouts starting in February 2013, the carrier says.

Under the plan, eligible US-based employees will receive a buyout equivalent to four weeks of gross base salary as of 30 November 2012 for every year of continuous service. The buyouts are capped at two years of base pay.

Employees will leave in three separate phases scheduled from 2013 until the spring of 2014. A majority of the eligible employees are in administrative positions within the FedEx Express and FedEx Services segments based in the USA. The cargo carrier says that pilots and maintenance employees will not be eligible for the buyouts.

The Memphis-based logistics company announced the buyout plan in August and disclosed further details to employees this week.

The buyouts are one component of its plan to find $1.7 billion in annual profit improvements by fiscal 2016, almost all of which come from the FedEx Express unit. Along with the buyouts, FedEx is seeking improvements from renewing its air fleet and improvements in its international profits.