The multinational FedEx, a transport company specializing in the sectors of road and air shipping and logistics, has announced that it will merge almost all of its land, air and other activities within the next year. This is a move as part of the company's cost-cutting plan that is estimated to generate 4 billion dollars in lower permanent outgoings in fiscal 2025.

"This organizational evolution reflects how we represent ourselves in the marketplace, focused on flexibility, efficiency and intelligence. As a single FedEx team, we are well positioned to fulfill our mission of helping customers compete and win with the world's smartest logistics network", explained Raj Subramaniam, President and Chief Executive Officer of the Group. 

The company said that FedEx Express, FedEx Ground, FedEx Services and other operating companies will be merged into a single entity by June 2024. Different fate for FedEx Freight, the company's freight services division, which will continue to be an independent company within Federal Express Corporation. The reorganization will generate savings in 2025 as follows: 1.2 billion dollars in Surface Network, 1.3 billion dollars in Air Network & International, finally 1.5 billion dollars in general and administrative.