Package-delivery company FedEx Corp (FDX) said it will offer voluntary buyout incentives to certain U.S.-based employees to reduce costs as slow economic growth hurts shipping volumes and customers demand cheaper delivery options.
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FedEx, which competes with United Parcel Service (UPS), said it expects the vast majority of those eligible for these incentives to be staff employees at its units FedEx Express and FedEx Services. The incentives will be offered to mostly non-operational staff groups.
The company said in June it is stepping up cost cutting measures. It said it expects the European debt crisis and slowing growth in Asia to impact the domestic and the global economic conditions.
FedEx said it is determining which workgroups will be eligible for these incentives and the program will not include any changes to retirement eligibility or payments.
It expects to provide more details at its investors and lenders meeting on October 9 and 10, the company said.
Shares of Memphis, Tennessee-based FedEx closed at $87.80 on Friday on the New York Stock Exchange.