We just noted that FedEx came out with earnings that were a bit on the weak side, and that they are laying off 1700 workers.
Let’s return to those layoffs real quick.
See, as we’ve been pointing out, the big M&A boom is in significant part, a scheme to have an excuse to create “synergies” i.e. layoffs.
But what do you do when you don’t have anyone to merge with?
“FedEx will combine its FedEx Freight and FedEx National LTL operations effective January 30, 2011. This action will increase efficiencies and reduce operational costs. Additionally, it will provide customers a choice of priority or economy less-than-truckload (LTL) freight services across all lengths of haul from one integrated company. This change, along with the company’s ongoing yield management initiatives, is expected to substantially improve the profitability of the FedEx Freight segment in fiscal 2012.”
Internal M&A! And you don’t even need to pay bankers!
Speaking of layoffs, hold tight for the initial claims report at 8:30 AM ET.
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