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FedEx Faces Big Changes as New Boss Confronts Higher Costs, Angry Contractors

  • Subramaniam tasked with improving profit, soothing contractors
  • Activist-picked directors and founder Fred Smith are watching
Raj Subramaniam
Raj SubramaniamPhotographer: Michael Wade/Icon Sportswire/Getty Images
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FedEx Corp.’s new chief executive officer, Raj Subramaniam, had plenty to contend with when he took over from package-delivery legend Fred Smith this month. Now he’ll have to roll out his growth strategy to a board that includes not only Smith, but new faces from an activist hedge fund as well.

After years as Smith’s understudy, Subramaniam will tell investors June 29 how he intends to lead FedEx while confronting higher costs for labor, Covid-related lockdowns in China and angry contractors at its crown-jewel FedEx Ground unit.