FedEx to consolidate operations

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by Emily Atkins

FedEx Corp. is consolidating its operating companies into one organization, effective June 2024.

This transition will bring FedEx Express, FedEx Ground, FedEx Services, and other FedEx operating companies into Federal Express Corporation, becoming a single company.

FedEx Freight will continue to provide less-than-truckload freight transportation services as a stand-alone company under Federal Express Corporation.

Raj Subramanian

Raj Subramaniam will serve as president and CEO of the combined organization.

“Over the last 50 years, we built networks that have created a differentiated and unmatched portfolio of services,” said Raj Subramaniam, president and CEO, FedEx Corporation.

“This organizational evolution reflects how we represent ourselves in the marketplace – focused on flexibility, efficiency, and intelligence. As one FedEx team, we are well positioned to execute on our mission to help customers compete and win with the world’s smartest logistics network.”

This new structure will help facilitate the company’s multi-year effort to improve the efficiency. In addition, the unified organization will bring distinct focus on the air network and international volume, as well as using both FedEx employees and contracted service providers for ground services.

Effective April 16, 2023, John Smith will become president and CEO of U.S. and Canada ground operations at FedEx Express and assume leadership of surface operations across the FedEx Express, FedEx Ground, and FedEx Freight businesses. Richard Smith will serve as president and CEO, Airline and International at FedEx Express, overseeing all other regions and FedEx Logistics.

During the transition period leading up to June 2024, there will be no change in financial reporting segments.