FedEx stock jumps as company announces plans to cut 10% of certain management jobs
Yahoo Finance Live anchors discuss FedEx's job cut plans and how the stock is reacting.
Video Transcript
SEANA SMITH: It's time for our Triple Play, three stocks that we're watching in the final 15 minutes of trading. We have FedEx, Live Nation, and Foot Locker. Kicking it off with FedEx, the company planning to cut more than 10% of its management jobs and will consolidate more teams and also roles. FedEx CEO Raj Subramaniam making the announcement in an internal memo. FedEx saying that the move is necessary to become a more efficient and agile organization. It's also going to, quote, "align the size of the network with customer demand."
Shares jumped today in midday trading. You're looking at it up just about 4-- just over 4%, it looks like, the highest level that we've seen in just about four months here. So, Allie, we're seeing the wave of layoffs here. Not a significant number of FedEx, but certainly companies needing to adjust their workforce, needing to adjust their headcount in order to kind of, I guess, adjust to the current economic reality.
ALLIE CANAL: 100%, and I was on the show yesterday, and I said the word of the day that you're going to keep hearing is "efficiency." And that is something that all of these businesses are grappling with. You've seen this in the tech industry. And the same problems that are hitting FedEx hit tech, right? You have this boom during COVID, everyone on their phones and computers. Now we're kind of leaving that COVID bubble, and now they're having to adjust their operations.
Same thing with shipping and packaging. You had a lot of people ordering things throughout the pandemic. Now that is taking a hit to the bottom line. So this is something that we're just going to continue to see. When you want to streamline a business, easiest or quickest way, I should say, to do that is usually through layoffs. At the end of the day, all these companies really want to do is be-- no pun intended-- irreplaceable.
