Fedex Will Cut 1700 Jobs

Fedex FreightOn Thursday FedEx announced that it would cut 1,700 jobs in its United States freight business despite earning $380 million in the first quarter. According to the company the move is to offset losses in US freight business unit. Earlier FedEx announced that their first-quarter net income doubled as a result of strong international shipping.

FedEx profit mainly came from the international air shipments which has grown approximately 25 percent in the last quarter. However the US freight business unit has been unprofitable for four straight quarters and made a loss of $16 million.

The 1,700 job cuts represent 5% of total freight business employees. FedEx says the move to cut 1,700 jobs, along with other cost reduction plans, will ensure the freight business to be profitable next year.