FedEx’s freight unit to furlough workers

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FILE PHOTO: FedEx stock tanks amid recession warning

(Reuters) -FedEx Corp’s freight division is furloughing employees in some U.S. markets as current business conditions are hurting its volumes, the package-delivery company said on Monday.

The move comes barely a week after the Memphis, Tennessee-based company warned of lower-than-expected delivery volumes in the United States as the pandemic-driven e-commerce bubble deflates.

The company “will continue to evaluate the environment and bring back furloughed employees as business circumstances allow,” FedEx said in an emailed statement.

Some eligible employees will be offered permanent transfer opportunities to other markets that have hiring needs, it added.

FedEx Freight will maintain health benefits and provide other financial incentives for furloughed employees, the company said.

FedEx outlined cost cuts of up to $2.7 billion in September after falling demand hammered first-quarter profit.

(Reporting by Aishwarya Nair in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Shailesh Kuber and Anil D’Silva)

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