FedEx buyouts could affect local economy - WSFA.com Montgomery Alabama news.

FedEx buyouts could affect local economy

(WMC-TV) - FedEx is planning to offer voluntary buyouts to thousands of employees.  The buyouts were announced in August and will primarily be at FedEx Express and FedEx Services.

The question now is: How will the cuts affect the company and the economy?

The slow global economy has definitely had a tremendous impact on the company's budget. That is why a majority of employees are being asked to take buyouts.

Certified financial planner Vincent Perry is responding to FedEx's announcement of voluntary buyouts for employees next year.

"It's just one of those decisions that unfortunately businesses have to make. Never good for the employee, but for the business it can be positive," said Vincent Perry, Ameriprise Financial.

It is part of a restructuring program to boost profitability in FedEx's under performing domestic express business.

The company says it plans to add $1.7 billion to its annual profit by fiscal year 2016 by cutting the number of employees and aircraft and by trimming underused assets.

"In the short term it's going to provide an economic stimulus because we have potentially thousands of employees who now have this influx of cash that maybe they weren't expecting," said Perry. "Long term, I think it could be slightly negative because obviously we have potentially thousands of employees who have left the workforce."

The company has not said how many employees would be affected in the Mid-South.

"When you look at 100,000 plus worldwide employees, 28,000 locally, the brunt of the impact will be felt locally," said Perry.

FedEx says further details about the buyout will be announced no later than the spring of fiscal year 2013.

Copyright 2012 WMC-TV. All rights reserved.


  • NewsMore>>

  • 3 dead from severe weather in Arkansas, Kentucky

    3 dead from severe weather in Arkansas, Kentucky

    Sunday, February 25 2018 2:25 AM EST2018-02-25 07:25:46 GMT
    Sunday, February 25 2018 12:58 PM EST2018-02-25 17:58:30 GMT
    (Liz Dufour/The Cincinnati Enquirer via AP). A view from the Central Bridge shows the flooding from the Ohio River  Saturday, Feb. 24, 2018 in Cincinnati.  Forecasters expected the Ohio River could reach levels not seen since the region's deadly 1997 f...(Liz Dufour/The Cincinnati Enquirer via AP). A view from the Central Bridge shows the flooding from the Ohio River Saturday, Feb. 24, 2018 in Cincinnati. Forecasters expected the Ohio River could reach levels not seen since the region's deadly 1997 f...

    A man in northeast Arkansas and a woman in south central Kentucky both were killed as the storm that also included strong winds, hail and heavy rain that triggered flooding muscled its way through the area, according to authorities.

    More >>

    A man in northeast Arkansas and a woman in south central Kentucky both were killed as the storm that also included strong winds, hail and heavy rain that triggered flooding muscled its way through the area, according to authorities.

    More >>
  • breaking

    Search warrant executed in 20-year-old cold case of Traci Kegley

    Search warrant executed in 20-year-old cold case of Traci Kegley

    Sunday, February 25 2018 12:49 PM EST2018-02-25 17:49:38 GMT
    Traci Kegley. (Source: Kegley family)Traci Kegley. (Source: Kegley family)

    Law enforcement officials are securing 300 acres of land in rural Elmore County Sunday morning to begin a massive operation connected to the 1998 disappearance of Traci Pittman Kegley. 

    More >>

    Law enforcement officials are securing 300 acres of land in rural Elmore County Sunday morning to begin a massive operation connected to the 1998 disappearance of Traci Pittman Kegley. 

    More >>
  • Political end to Olympics: NKorea offers talks with US

    Political end to Olympics: NKorea offers talks with US

    Sunday, February 25 2018 2:16 AM EST2018-02-25 07:16:08 GMT
    Sunday, February 25 2018 12:28 PM EST2018-02-25 17:28:11 GMT
    (AP Photo/Patrick Semansky). A volunteer walks in a foggy Pyeongchang Olympic Plaza during the 2018 Winter Olympics in Pyeongchang, South Korea, Saturday, Feb. 24, 2018.(AP Photo/Patrick Semansky). A volunteer walks in a foggy Pyeongchang Olympic Plaza during the 2018 Winter Olympics in Pyeongchang, South Korea, Saturday, Feb. 24, 2018.

    Pyeongchang closes its chapter of the modern Olympics on Sunday night with tales of detente and competitive grit and volunteerism and verve.

    More >>

    Pyeongchang closes its chapter of the modern Olympics on Sunday night with tales of detente and competitive grit and volunteerism and verve.

    More >>
Powered by Frankly