FedEx 1Q profit doubles; will cut 1,700 jobs

[liberal N proud]

:wtf:

NEW YORK – FedEx Corp. indicated Thursday that the global economic recovery isn't as strong as previously thought, and moved to fix the weak spot in its operations: its money-losing truck business.

FedEx did raise its financial outlook after its first-quarter net income doubled. But the projections for the second quarter and full year fell shy of Wall Street expectations, and the stock dropped 2.6 percent in premarket trading.

Growth in international air shipments has been driving FedEx's results lately. That continued in the first quarter. But the FedEx Freight segment lost money again as demand for large items like refrigerators and other appliances continues to be weak.

FedEx will combine its FedEx Freight and FedEx National less-than-truckload operations on Jan. 30, closing 100 facilities and cutting 1,700 workers. FedEx says the move, along with other cost cuts, will ensure the trucking business is profitable next year.

http://news.yahoo.com/s/ap/20100916/ap_on_bi_ge/us_earns_fedex

The company made money, but we are going to let you go anyway?

[lonestarnot]

1. top 1% are gona steal that dough from every angle, tax cuts or no tax cuts.

[marmar]

2. Ain't that corporate America for ya......

Noam Chomsky says it very well:


"Privatization does not mean you take a public institution and give it to some nice person. It means you take a public institution and give it to an unaccountable tyranny. Public institutions have many side benefits. For one thing they may purposely run at a loss. They're not out for profit. They may purposely run at a loss because of the side benefits. So, for example if a public steel industry runs at a loss it's providing cheap steel to other industries. Maybe that's a good thing. Public institutions can have a counter cyclic property. So that means that they can maintain employment in periods of recession, which increases demand, which helps you to get out of recession. Private companies can't do that in a recession. Throw out the work force because that's the way you make money."

[dkf]

3. Wouldn't that be the postal service?

WASHINGTON (March 20, 2009)—The U.S. Postal Service announced Friday it is closing six of its 80 district offices, cutting 15 percent of its administrative staff positions, eliminating more than 1,400 supervisory positions around the country and offering early retirement to about 150,000 workers in an effort to save $100 million a year.

http://www.kwtx.com/mobi?storyid=41591077I

[marmar]

4. The Postal Service is quasi-public, like Amtrak.

nt

[Moostache]

5. Ain't "free market economies" great?

THIS is why they hate unions and government and anything else that stands in the way of their unfettered profiteering. The owners and board members of Fed Ex should be held accountable for every job cut they propose by having offsets - every job lost is x% of their compensation lost...you'd NEVER see another lay off ever again!