FedEx Layoffs Hit Memphis Hardest

Company cuts 1,000 jobs

FedEx layoffs went through today after a warning about two weeks ago that they were coming. In total 1,000 workers worldwide were affected. About half of those were in Memphis, Tenn., where the company is based.

Do the math

The layoffs are part of FedEx’s effort to cut $1 billion in annual spending. Last month FedEx reported that profits had plunged 75 percent in the past year. FedEx says in addition to the layoffs, some foreign employees  will get pay cuts and there will be other changes in work hours and personnel.

Who got the ax?

The workers who were laid off today were salaried, exempt employees. No hourly workers were affected.

“We have have begun to reduce the workforce. It is consistent with what we previously announced. We’ve had to reduce our network to match volumes and customer needs. It was a very tough decision. It was unavoidable because of the global recession,” FedEx spokesman Jess Bunn said.

Door prizes

All laid off FedEx employees will receive severance packages and job counseling. This should help people who might otherwise need payday loans. Also, if any FedEx jobs are restored in the future, laid off workers will have the opportunity to apply before the jobs are advertised.

Past sacrifices

In December, FedEx cut the pay of about 14,000 Memphis workers. At that time the company also ended its 401k matching program.

Seattle sliding

Elsewhere in the country, Seattle, Washington, seems to have had a particularly rough couple of weeks. Several different technology companies laid off workers or shut down plants this week. ... click here to read the rest of the article titled "FedEx Layoffs Hit Memphis Hardest"