FedEx Overhaul Contemplates a Future With No Drivers on Payroll
- CEO plans integration of major ground, air delivery networks
- Courier is seen moving toward model using contract drivers
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FedEx Corp. is ripping up founder Fred Smith’s well-worn playbook as it rethinks virtually the entire business. That could mean the end of FedEx drivers as we know them.
The courier’s vast and complex system of overlapping delivery networks will be simplified with the integration of its two largest business lines in the most sweeping restructuring in its 50-year history. Chief Executive Officer Raj Subramaniam, who took over for Smith less than a year ago, calls it “a more holistic approach to how we move packages” that will help the company save $6 billion by 2027.