FedEx posted profits but still feels the need to cut jobs; the shipping giant is constantly looking for ways to improve.
Cutting anything is hard. Long hair. A 2X4. But nothing is harder to cut than jobs. Job cuts affect a business’s most essential asset: people. According to an article in The Washington Post, FedEx is cutting jobs as a way to mitigate losses in its domestic freight division. The motivations behind its strategy are a reminder to credit unions stay sharp.
As a result of poor performance, FedEx Freight has come under fire. The international wing of the company has increased its revenue 24% for the quarter that ended in August, but FedEx freight isn’t cutting it anymore. The company is combining two freight divisions and making other cuts, including shedding jobs and closing service centers, to ensure the profitability of its freight division. Time will tell if the moves work.
What can credit unions learn from FedEx? Always be looking at what is working and what isn’t. Aside from members, employees are a credit union’s most valuable assets. To avoid finding yourself in FedEx’s position, keep a sharp eye out for ways to save, improve, and innovate.