FedEx buyouts get closer to reality - WMC Action News 5 - Memphis, Tennessee

FedEx buyouts get closer to reality

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  • FedEx details voluntary buyout information

    FedEx details voluntary buyout information

    Wednesday, December 5 2012 10:56 AM EST2012-12-05 15:56:05 GMT
    (WMC-TV) – FedEx officials are releasing information to its employees regarding their eligibility for the voluntary buyouts that were announced in August. The buyouts will be offered to eligible U.S.More >>
    FedEx officials are releasing information to its employees regarding their eligibility for the voluntary buyouts that were announced in August.

    INSIDE: Read the 15-page document detailing the FedEx buyout eligibility guidelines.
    More >>

(WMC-TV) - Additional details are coming out about the FedEx employee buyouts. An internal memo reveals the global shipping giant plans to release more information to its workers on Wednesday.

The memo, dated last Friday, says they will send e-mail to employees with one goal: "To explain, at a high level, the most significant organizational realignments."

FedEx will also reveal "which groups are being carved out", meaning which employees will not be able to buy out of their jobs.

Economist John Gnuschke has no relation to FedEx, but he says the buyout will benefit the Mid-South because employees will get lump sums of money.

"FedEx is such an important part of this community," said University of Memphis Economist John Gnuschke. "They're going to have an injection of new dollars and it's going to come into this community. It's going to be very large and for most part will be spent here."

Gnuschke says the money will come in the form of new homes, home repairs, investments, and new business. The buyout will also release talent into the community.

Insiders say executives and everyday workers alike are taking the buyout.

"It's a positive thing for most of the people who are taking the buyout. The way we know is they've agreed to it," said Gnuschke.

The deadline for employees to apply for the buyout and submit their agreement is April 1.

The internal memo that went out Friday can be read below:

FedEx Services Organization Structure & Voluntary Buyout Update

Thank you for your patience as we work to finalize details of our roadmap for future success. As you've heard over the past few months, our planning teams and senior officers have been working extremely hard to establish an organizational structure that continues our success as a $43 billion enterprise.

On Wednesday, February 6, we will communicate more information about our roadmap for future success, including an update on our organizational structure and additional information on the voluntary buyout process.

You can expect to receive a series of email communications starting Wednesday morning. As part of those communications, your senior officer will share specific information about the future direction of your division. Please note that it will not contain detailed organization charts or position information below the director level. The goal is to explain, at a high level, the most significant organizational realignments we plan to make in the months following the voluntary buyout process. A series of cross-functional teams continue to work on plans for our future structure below the director level. Those details cannot be finalized until after the voluntary buyout process is complete.

Information provided will also identify which groups are being carved out of the voluntary buyout process. As we have said before, some groups may be carved out of the buyout program, meaning the employees in that department, location, organization code or job code will not be eligible to participate in the buyout opportunities. The carve out decisions are based on business needs to ensure we can operate effectively after the buyout process is complete. As you know, we have to carefully manage this process to achieve our mission.

We look forward to sharing this information with you next week.

Mike Glenn
President and CEO
FedEx Corporate Services Rob Carter
Co-CEO and CIO
FedEx Corporate Services

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