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Minimizing Job Losses and Protecting FedEx for the Long-Term

December 18, 2008

Today FedEx announced earnings for the second quarter of our fiscal year 2009. As you can see from that announcement, we face serious economic challenges and must take immediate steps to minimize job losses and protect the long-term financial health of our company. We are doing exactly that with several significant actions that impact all of us:

For the first time, U.S.-based management and salaried-exempt team members will take permanent pay reductions. These salary changes will not impact hourly employees such as couriers, mechanics and package handlers.

  • My salary will be reduced 20%.
  • Other FedEx senior executives will have their salaries reduced 7.5 to 10%.
  • The rest of our salaried-exempt workforce will take 5% reductions.
  • We are also eliminating 2009 merit increases and fiscal year 09 bonus payments for U.S. salaried-exempt personnel (sales incentives are not affected).

In addition, we will be suspending the 401(k) company match effective February 1, 2009, for a minimum of one year. We hope to reinstate the Company match in 2010, depending upon business and global economic conditions.

These actions are part of broader efforts to reduce costs throughout our organization. Based on these programs we are projected to reduce spending by more than $1 billion through FY2009 and another $600 million through FY2010.

I fully recognize that these pay actions are difficult, but this economic environment is unprecedented for us and requires decisive action. Taking these hard steps now will mean a stronger FedEx later. I’m confident we will manage through these tough times and be positioned to take full advantage of market conditions when the economy rebounds.

I am asking all our team members to keep focused on delivering an outstanding FedEx experience to our customers and to each other. That has made all the difference during past economic challenges in our history. Our ultimate success depends on it again today, and I know we’ll come through.


Comments

    Mary says:

    I’m proud of the actions our company has taken today to protect our corporation. This is how our culture always planned to handle a serious economic downturn.

    rafael milani says:

    This is why FedEx is a strong and solid company. Even thought these are not popular measures, we keep our focus on our philosophy and the commitment with our customers, trusting that our leaders are always striving the best for us. I’m FedEx!

    Tracy says:

    Thank you for trying to ensure FedEx is there for us tomorrow and trying to maintain jobs for everyone.

    rafael ramos says:

    Our company actions will protect our future and job security. We all being affected by the changes, but as a company we are up to the challenge. We are still a people company what we are not is a person company.

    Barb Drabowicz says:

    More proof that FedEx is one of the best employers in the world. Thank you Mr. Smith and the executive management team.

    Mike says:

    This is the Fred we’ve all come to love & admire. He takes the actions that we need to be successful, protects his people as much as possible, and takes on the lion’s share of any pain.

    Jason says:

    We know that none of these decisions were taken lightly, and are thankful for such an honest leader who truly cares about the people who make up our company.

    Rita Brasher says:

    I’m very proud of our company and its continued focus on the needs of the employees during rough economic times.

    Jan Payne says:

    This is an opportunity for Purple to shine despite the gloomy economy. While we focus on our customers, we also support each other personally as well as professionally. As an employer, FedEx shares the gain all around when times are booming – we can return the favor and help mitigate the pain during the tough times. Coming through this will become part of Purple Lore. Thanks for the great leadership!

    michael says:

    From its beginnings, the pledge was made by FedEx to always protect the customer, employee and shareholder. This promise, from an employee perspective, has not changed over the 35 years of operations and it is safe to infer this will not change over the next 35 years.
    FedEx is not isolated from worsening economic conditions, and the businesses we service face this similar landscape. The approach we must continue is to provide the excellent experience customers are accustomed. Our focus need be on supporting customers so they are positioned to yield success in the marketplace.

    Mary Harvey Gurley says:

    I’m so proud of our management team and the decisions they’ve made for the business during these tough economic times. I’m 95% whole in pay while so many people have lost their jobs. I’m so proud to work for this great company. Now let’s go get some packages and get volume up! We will get through this if we all work together as a team!

    HARD WORKING EMPLOYEE says:

    STOP THE ADVERTISING COSTS!! Take care of the people that “make” this company

    Jim says:

    Kudos to Fred Smith. As we hear more and more CEO’s say they will not take there $1 salary this year but still take millions in bonuses it is nice to see Mr’s Smith take a REAL cut in his own pocket and a much deeper one than the one he is asking us to take.

    bob says:

    We are lucky to have such great leadership. FedEx should be the model for how to treat employees.

    No wonder FedEx employees are so proud and loyal, it all comes from the top! Thank you for looking out for everyone and being fair!

    Pat says:

    FedEx is different. This is by far one of the best managed companies I have ever seen. Because the officers are not just managers — they are leaders. I am a relatively new FedEx employee, having marked my 4th year anniversary on November 1. Prior to joining FedEx, I was downsized out of three jobs in the span of 5 years. In those previous jobs, I worked for a company whose officers watched the business fail, took their money, and left the employees behind; and another company whose officers were so clueless to what was happening that they had no chance of surviving. All of which can leave a person jaded, but there is no comparison here. I believe FedEx officers walk the talk where the corporate values are concerned: People, Integrity, Responsibiity, and it will make all the difference.

    Frank says:

    I think the decision is fair. I thank the decision makers for this heroic attempt to safe guard employees jobs. For those who grumbled about it, why not switch places with those people at other companies that got laid off and see how it feels. Thanks Fred

    T says:

    Most of us have had merit increases the last two years that are more than the 5% so this isn’t that big of a deal IMHO. I am thankful to be working for such a great company. Good to see we have smart and caring leadership in this company.

    Dee says:

    I’m currently floating between the stages of anger and acceptance right now.

    Having never gone through this process, I’m upset that I have to watch my purchasing power shrink further via my paycheck. I keep thinking “Take what you want, but don’t touch my salary”. It gets especially difficult as you read the earnings released today and how much money was made, yet we have to pull together as a team.

    On the other hand, I know that things could be worse and that I am able to work tomorrow. Now is the time as managers to set an example and show that we can persevere in all aspects of our lives: work, family, etc.

    NASCAR Bob says:

    I am a big fan and have been to many races but is it prudent to keep spending tens of millions on this?

    Mary Harvey Gurley says:

    Advertising builds business—and we have cut $32 million in advertising costs this year. We have to remain in the public eye to get business. I think today’s actions “took care” of all of us who make this business run every day.

    R Davis-Fant says:

    Thanks for caring!

    Al Perez says:

    My compliments to Fred and all management. It makes this economic turmoil that much more easier to swallow. It is this kind of action that will keep FEDEX alive for many years to come.

    Susie Langston says:

    With unemployement at record highs, not only is this action the best thing for the Company, its people and its customers, it helps the economy by not infusing more unemployement into the mix.
    My response over the last 6 months to outsiders who have asked me “How is Fedex doing? has always been .. “We have brilliant leadership at this company and I know that this company will handle this economic crisis better than most.” These actions just demonstrate what I already knew about the Leadership at FEDEX.. !!!

    Carole says:

    Fred,as a 26-year employee,thank you for speaking directly to us and for the confidence you have in your people. We will survive! You are the company to those of us who have been around a long time, and just knowing you are there makes all the difference.

    Marcie Moss says:

    I have been with FedEx 26 years and never have I felt more proud and purple blooded than I do at this moment. I am proud, Mr. Smith, that you care enough about the employees to do what you feel is necessary to save the greatest company in the world and it’s employees! I support your decisions 100% and will do everything in my power to help keep FedEx the best in the business. Together we will make it happen!

    Reba Johnson says:

    Given the state of the economy and the challenges we continue to face, BZ to the Executive Team for making the hard decisions and still thinking of its people. The FedEx Team stands behind you and thanks you all for supporting the workforce. As we move forward, we will continue to deliver on the Purple Promise and feel BLESSED to work for this Great Company, led by LEADERS who still put people FIRST!!!

    Although we are going through hard times…..We will get through, stronger and better than before.

    Thanks….

    Terri says:

    We are bleeding purple again! After 27 years, I’ve seen amazing things at this company to keep employees and customers happy. Thanks for doing everything possible to keep our jobs. I believe FedEx just set the example of “how it should be done” yet again.

    Confidence in Mr. Smith says:

    I am confident in the forward thinking our leader to develop our own company bailout. No one’s ever happy about reductions but we absolutely understand and admire that.

    We are in hard times and money’s tight. We have to remember there are other creative ways to do that besides money so it is indicative to continue the PSP philosphy showing our people they are the company’s most valued asset.

    Steve Steffens says:

    Again, we have taken proactive steps to avoid job loss in a growing worldwide economic crisis. As other companies have made major cuts to their personnel, we have not, to this point, and I am grateful for that.

    To this end, I would add one more cut: Dividends. As our investors applaud and reward our management for making the steps necessary for our survival and eventual prosperity, they too should share in the cuts. We do this for their benefit as well.

    DENISE ATALA says:

    My husband and I have been with the company for over 21 years and are both so proud to work for FedEx and to be under such great leadership. Thank you Fred Smith!

    Dean says:

    Just curious how much of a pay cut the pilots are going to take to help keep our great company strong? Since they make about 38% of all wages paid on the Express side one would think they would like to cut what they make by at least 5% as well to keep FedEx strong and viable in the future.

    Elizabeth says:

    As a second generation FedEx employee, I am very proud and thankful to call FedEx my employer. I am so glad Mr.Smith is taking these steps to protect our company and our jobs. Mr. Smith, as an hourly employee of 13 years, I am ok with not getting a merit increase this year. Merry Christmas to all!

    Stephen Reynolds says:

    Dear Mr. Smith,
    I started with this company on the input line at the Memphis hub almost twenty years ago. Through many years of sweat and even a little blood, I finally landed a job in FedEx Corporate. Through it all, I’ve always been impressed with the leadership of our company overall, but never have I been more proud to work for FedEx than today. Our employees should be aware that we are facing possibly the worst economic storm since the great depression. We are indeed witnessing history.

    As I watch the news and see report after report of CEOs stuffing their pockets and bailing on their employees, I’m reminded that true servant leadership is a scarcity in the world. Perhaps the reason is that all the great leaders work at FedEx. I, for one, would like to say thank you for preserving our jobs and putting people first at a time when it matters most.

    Best Regards,
    Steve

    Pam says:

    Thanks again for putting people first – as a 25 year employee I feel truly blessed to work for a company with such great leadership and concern for their employees.

    Benny Arogyaswamy says:

    I am glad that I work for an organization that can take care of its employees while positioning the company well both for the short-term with the depressed economy, as well as for the long-term where we seek to gain market share. The honesty from our leaders is a big contrast to the ineptitude and duplicity of the Bernard Madoffs of the world. Thanks Fred and team.

    Andrea Vassalle says:

    From EMEA – I’m proud to be a part of this “families” and if I can help yuo I’m also a volunteer with my 5%. Fred, I’m at your disposal.

    Lori says:

    I am grateful to work for this company. My twenty-year anniversary is in January. The majority of my waking life is spent at work, so I am thankful that I had the chance to work in this great company for most of my adulthood. At FedEx, I have found friends: kind, conscientious individuals who embody quality and want to do the right thing. Our corporate leadership is the best in the world. We are enabled to do the right thing for our customers, and that makes me happy and proud. It’s a good life!

    BETTYLING says:

    I AGREE WITH YOU COMPLETELY, I AM SO UPSET WITH WHAT I’VE SEEN ON TV LATELY. GM IS COMPLETELY DISGUSTING WITH THE WAY THEY HANDLED THINGS, AND AIG FOR GET IT. I ADMIRE THE WAY THINGS HAVE BEEN HANDELED.

    Patrick J Doyle says:

    In these times of CEO’s destroying companies and peoples lives with their own self intrest and greed, FedEx again demonstrated the core values of true leadership. As a former Marine, the example that my officers and NCO’s gave in their sacrifice and willingness to endure what we endured allowed us to survive difficult times and situations as a team.

    Today, when we discussed with our employees the decision to take the actions we must for FedEx and our people, I was not bitter but rather I felt that same pride, loyalty, and honor to FedEx as I did in a mud hole with my Captain ensuring I had something to eat after a freezing night.

    I know the decision to make these cuts was not easy, but unlike many firms, we as FedEx are all in this together. Nothing clearly demonstrated this more then the sacrifice Mr. Smith and the executive team is willing to make with us.

    Roll Purple Roll I’m FedEx

    Steven Franzese says:

    P-S-P philosophy is all we have. I believe this is why People come first with FEDEX. We as leaders help protect our employee base. I am proud to be part of this Great Leadership team at FedEx !

    Elois Slone says:

    As usual the FedEx upper management team has shown that they put FedEx employees first. Regardless of the outcome we know that FedEx does everything they can not to follow in the footsteps of other large companies and as always “the best company to work for” and a head above the rest.

    Michele Muise says:

    Just celebrated my 19th year with Fedex and am very happy to look forward to my 20th! Thank you Mr Smith for your candor and leadership example. If you need me to help in any other way just say the word.

    Mike Bush says:

    Semper Fi Fred! Always Faithful to the troops and well versed in the #1 leadership principle. Take care of your people in good times and when the going gets tough. We will take on the fight and take care of this company the world can’t do without…

    Dalles St John says:

    Be greatful you have a job! I have been through a company downsize during a Christmas holiday and it wasn’t fun believe me. It destroyed many lives, families, hopes and dreams, and homes. I am proud to be a FedEx employee. Good job Mr. Smith!

    Charlene Fallis says:

    THANKS FOR SAVING MY JOB. I am a 24 year employee and have seen the greats and bads. Yes this is probably the worst, but I am so greatly to have a job. Thanks for thinking of the company and the employees. Is it possible to bring back the stock purchase program at a reduced cost? We could start purchasing stock again in our company at a lower cost like we did back in the 80’s/90’s.

    George says:

    Having been an employee at Fedex for over 23 years, agree we are one united family that share in our concern for others not only at Fedex but also outside our Fedex family that times have taken a much harder turn on. In as much as going forward the belt will keep have more holes punched in it as we tighten even more. Take pride folks in Mr. Smith and all the members of OUR management team in our accomplishments thus far. We CAN and WIll face this challenge. Maybe some of the other companies who are faced with bailouts and possible default should take note on OUR management that has gotten us this far and so reality SURVIVOR-FEDEX

    Betsy Curfman says:

    This had to be a tough decision for our leadership team, but it is reasonable action that will hopefully help FedEx ride these rough economic times. It is good to work for a company that has strong leadership that looks the options before it becomes too late. Thank you Mr. Smith. I am confident if we continue to fulfill the Purple Promise we will make it through this downturn in business and be in the best position to serve our customers as the economy comes out of this recession.

    Brooks says:

    I am so thankful to be working for a company with such amazing leadership that is once again an example of how corporate citizens should behave. I’m also proud to see the overwhelming support that is being shown on this blog site. It is a bittersweet day, but I’m happy to make the sacrifice to support the wonderful company that FedEx is and it’s amazing employees who are so willing to pull together to get us all through. Many thanks and my sincerest appreciation to all!

    Lisa Daniel says:

    As a 31 year employee, I echo my FedEx team members comments that you have made a good decision. Every year when we sit down to watch It’s A Wonderful Life, I think of Memphis and our community. What would it have been like if we had not had Mr. Smith’s vision and leadership. Many families have lived well in Memphis due to our good company.

    Rowena David says:

    Mr. Smith, thank you for being such a caring and thoughtful leader! I appreciate all that you do to ensure job security for us. I am a very blessed and proud FedEx employee!

    George says:

    Nascar, Golf, Football field, Orange bowl…Right on

    JANICE E. NUGENT says:

    I HAVE CONFIDENCE IN FRED SMITH. HE HAS TAKEN THIS COMPANY TO HEIGHTS THAT I NEVER EXPECTED WHEN I BECAME A COURIER IN 1979. HIS INSIGHT GIVES ME HOPE FOR THE FUTURE OF THIS COMPANY. I HAVE FAITH IN THE DECISIONS THAT HE MAKES FOR THIS COMPANY.

    Randy says:

    I think the actions anounced today were the right thing to do. I think it is very much in line with how the new administration expects all of us to tighten our belts in order to get the economy back on track. I am especially proud to see that the non exempt employees that take care of the operations were not impacted any more than they already have been. When you see the big automotive companies seeking government assistance without any of the CEO’s or executives having sacrificed it is inspiring to see our executives sharing in the sacrifice with us.

    Tracey Foster says:

    This is true leadership and it is clear of why we are a great company.Our leadership has always been up front and honest.I am proud to be a part of this great and powerful company.

    TF

    Phil says:

    I just bought more FDX stock! I’m committed to FedEx and our customers for the long haul. Today’s actions are the right thing to do and reflect highly on the leadership and culture of FedEx. BZ Fred, Alan and our Sr Managment team!

    Purple Blood says:

    Hope we don’t spend 1Mil on the SuperBowl…

    Norm says:

    I could sacrifice even more if it meant holding our team together through this difficult time.

    Joan Brescia says:

    I also would like to take proactive steps to protect myself for the long term. I questioned
    Vanguard 6 months ago about the possibility of closing my 401K and rolling it over into an IRA. I was informed that although I could opt out of the program it was against Fed Ex policy to close out my account completely unless I no longer worked for FedEx..
    Armed with that information I decided that the co match was still a good enough incentive to stay the course. Given the recent turn of events ( no longer matching) it does not seem prudent to not move my existing savings to a more secure vehicle as I also would like to minimize my losses .
    It is downright foolish to allow my retirement savings to be frittered away by decisions and actions which are out of my control. I suggest that FedEx remove the restriction for closing 401K accounts, if they will be rolled over into an IRA and give its employees, especially those close to retirement, a chance to survive this unprecedented economic downturn.

    Pat says:

    This really shows how Mr. Fred is dedicated to his employs and the company as a whole. “A true Visionary” is what you call it. Good looking out Mr. Smith!!!!

    Ben Galle says:

    I’ve been around the company since ’88, I have returned recently after some time for family needs and here’s proof why I chose to come back to FedEx. Because it is the best company work for, great leadership and proud employees. To have your CEO start with himself and take the largest cut shows what a great man Fred is.
    I am confident in our leadership and the ability for us to stay strong and show how a true company operates, in good times and bad.

    Hugo Montaudon says:

    Hat down for this tough decision!
    This, makes me proud to tell everybody “I’m working for Fred”, a boss who is leading by example.

    Doretha Truesdell says:

    I have always been proud to work for FedEx. I have worked for FedEx for nineteen years. One of the main reasons I admire FedEx is that executive management is forward thinking. They make tough business decisions that enable us to stay employed. Again, in this economic downtown executive management is walking the talk. This proves again that FedEx puts People First. Thank You!

    Joyous Montgomery says:

    Courage in tough times. This could not have been a easy decision, however, it needed to be done. God Bless Fred for keeping the PSP alive.

    Margo says:

    I am greatful to still have a job, and work with an organization that plans to be around in the future. We have a new President, and things will change but it will take time. Mr. Smith, you have restored my faith in PSP as we ride this extreme tide of hardship out. You are a leader in word and action. Thanks so much.

    eric ballejo says:

    Although this is hard news for anybody to hear, I overall feel that these moves are in the best interest of the company and the fedex people long term. If the country was ran the way this company is being ran america would not be in the trouble it is in now. Lets be supportive of those that are making these tough decisions.

    Joe says:

    THANK YOU!
    This, too, we shall over come.
    Happy Holidays

    Antonio Estrella says:

    I had a manger once call me into his office to find out five minutes later that I had three more days to work before I would be no longer needed. This was in the early nineties when the dealership industry was taking a hit because of the economy. Needless to say, not a very happy place to be in. Yes I was shocked when I read the announcement and listened in on the call this morning, but I would go through many more days like this than through a day like that one back before I worked for FedEx. I have been with the company over 11 years and have been a manager for just under two. So yes, I am directly affected, but I am proud to be working here and because of hard measures like these I know I will have a job tomorrow. I plan on retiring from this company many years from now. After all, it was one of the reasons why I applied to begin with….

    Sharen Gibson says:

    Excellent time for each location to review cost cutting measures. During the past 2 1/2 years at SDMA as as Admin. Asst to the Sr. Mgr. we reviewed every contract and billing. By making several changes we are now spending by far less for most services than we were 3 years ago. All employees should be encouraged to give suggestions on cost saving changes. This is an excellent way to help everyone know that we are all in this together!

    BRENDA COLEY says:

    BZ! FRED..AND ALL FEDEX EMPLOYEES AS WE ALL STEP
    UP TO ASSIST IN ANY WAY WE CAN TO SUPPORT THIS
    GREAT COMPANY! LET’S STAY FOCUSED..WE’VE FACED
    CHALLENGES BEFORE AND STILL CAME OUT ABSOLUTELY, POSTITIVELY THE BEST IN THE BUSINESS!

    Kathy Torode says:

    I am very happy to have a job at FedEx! Although it is not exciting to be getting less money each month, I would rather deal with that than be out out of a job.

    Gloria Inzano says:

    What Fedex has given me over 27 years:
    -secure employment
    -fair wages and increases
    -health benefits for my family
    -career opportunities
    -recognition for a job well done
    -a second family
    -the ability to provide for my family

    Mr. Smith, although it will be a stretch for my family, I will gladly give back 5% to help our great company survive and believe me, with the great team we have there is NO WAY we will fail. Thank you for the gift of a JOB this Holiday season.

    Larry says:

    It seems to me there are plenty way for fed ex to cut costs. I will name just a few. stop sponsering the fed ex cup. and stop sponsering the fed ex racing team. stop putting all those color inserts in with the checks. stop making those cd that tell us what the company is doing for us. I dont know how much that would save but it would be a bundle of cash.

    TMR says:

    Im still proud to say I work for this company and know executive management did everything possible and Im proud to take a paycut just to keep my job. But those of us who work in a dept that hasnt gotten such great pay raises the last several years, 5% puts me back to what I made it 2005, having only gotten 2% for the last several years. Thats ok, but lets look at cost cutting measures in nascar, advertising, how about saving money by not purchasing the styrofoam coffee cups that are bad for the environment, everyone has a coffee mug. Stop the holiday decor at christmas, even though there are no trees decorated in the big foyers, there are still wreaths that we could outsource that company, outsource the people who water the plants. Stop putting up expensive murals on the wall that cost 1500 a piece. Cut the air down to 68 in the winter and 75 in the summer. There are lots of small things we can all do to add up.

    Jesse Lange says:

    Although the loss in pay and pay potential will be a strain on my family, I feel it is better than a possible alternative of a 10% reduction in force. Spreading the pain to all, instead of just a few, is the right thing to do.

    FedEx Corporate Communications says:

    In response to questions about pilots compensation:

    Pilot bid lines, which determine their monthly pay, have been reduced as volume had declined and flights have been discontinued. That has affected their pay at about a 6% level. Total pilot wages are less than 10% of the total Express payroll.

    Bob Raimo says:

    Bravo Zulu to you Fred Smith!

    Doretha Truesdell says:

    I have always been proud to work for FedEx. I have worked for FedEx for nineteen years and I am looking forward to 20 years. One of the main reasons I admire FedEx is that executive management is forward thinking. They make the tough business decisions that enable us to stay employed. Again, in this economic downtown executive management is walking the talk. This proves again that FedEx puts People First.

    My tenure with FedEx exceeds 18 years. I’m at peace and have genuine gratitude, knowing I have a job I thoroughly enjoy with the situation of the economic crisis, not to mention two daughters who are away in school. I’m thankful to God, and I’m also appreciative of consideration demonstrated with the Leadership of FedEx.

    Respectfully,

    Vossa L. Hamer

    Juan Parron says:

    While I will not say it hurts. I will say I understand. At least we have kept our jobs for which I applaud Mr. Smith and the upper management. One less round of golf a month in the summer and one less pack of cigarettes a week, but then again I have been meaning to quit.

    Jennifer DeLater says:

    I am extremely proud to be working for FedEx right now and I am truly thankful that the company is making business decisions that are looking to keep each of us employed. Thank you.

    Amy Schmidt says:

    Be grateful you are employed! I’ll admit I felt a momentary twinge of loss when it was announced, but if everyone would stop to think about what a difficult decision it was for the FedEx management and be grateful that this is the action they have taken–rather than layoffs or downsizing–we can see the value in their actions. Rather than waiting until they were weeks away from running out of funds like the automakers, FedEx has prudently taken a proactive step that protects each one of us as employees and shareholders.

    Fred Smith has set the example by taking the biggest paycut, followed by the executives, and finally a smaller cut for the salaried employees. He wisely did not cut the hourly employees’ pay, as many of them are working paycheck to paycheck and would be the most hurt by any kind of decrease.

    I am proud to be a long term FedEx employee and fully support the decision to protect our company during these difficult economic times!

    Amy Zupkow says:

    Thank you Mr. Smith.

    Thank you for your leadership and foresight. By taking measures now, we can help position ourselves to weather the storm. Nobody wants a pay cut but we’re a team, a family. Together we can do this even if it means further cuts and sacrifices down the road. I see the announcement today as a Christmas “bonus” – it represents the bonus of hope for the future and renewed trust in our leaders at FedEx.

    To those who have suggested cutting advertising and sponsorships (such as NASCAR), please remember why we spend that money. These vehicles put our name out there and keep us “top of mind” with decision-makers for both current and potential customers. While judicious, limited cuts in these areas may be necessary, wholesale cutting of these expenses is done at our own peril.

    lmg says:

    All I can say is thank you…at least I can still come to work everyday!!!
    This could not have been an easy decision and I applaud our leadership team for putting the people first. That is why I am proud to work for FedEx!!!

    rmh says:

    Fedex has been my home for 20+yrs with hopes of more to come. The comments and statements heard today, once again, restored my FedEx pride.
    I have confidence in Mr Smith and his executive team, of this great company, to make the right decisions to guide us through these tenuous times.

    Brian Abare says:

    QUESTION OF THE DAY – After this mornings announcement I took a tour of the building and listened to the conversations taking place in hallways, elevators, and cubicles. For the majority the mood was upbeat and I sensed a great deal of pride at being able to keep their jobs and continue to contribute their talents to keeping the company moving forward in the worst of times. Oh yes the QUESTION OF THE DAY….for those complaining about loosing 5% of their purchasing power….wouldn’t it be harder to adjust to the loss of 100% of your purchasing power?????????

    Henri says:

    Many thanks to Fred Smith and his visions for our company and our future. I am a 25 year employee and have seen alot of changes in FEDEX. I am grateful to have a job to come to each day and want to do what i can so everyone can keep working. Thanks again “Uncle” Fred and happy holidays to you and your family.

    Kathy Lynn says:

    Like most have already stated, I am thankful and happy that I HAVE A JOB! I have all the confidence in the world that Fred will take care of his people. I love this company and will do whatever I have to do to keep it going strong. A five percent pay-cut beats the heck out of standing in the UN-employment line!! Thank you Fred for your vision and always making the right decision when it comes to your people!! BZ!

    Tony Russell says:

    I have been blessed with 2 jobs in my life, USMC & 20 years at FedEx. I’ve been blessed with a Wonderful Life, one I am truly grateful for.

    Mr. Smith I am forever in your debt for the opportunity to work in this great company we call FedEx. My willingness to gladly take a pay cut is easily done when I see my employees, knowing the loving, capable hands that lead the way.

    You are my hero Mr. Smith!

    Yeah says:

    I would be able to swallow this pill easier if there was some “incentive” to taking a paycut, like receiving stock.

    Let’s say a 5% paycut = $3000. Why not take that money and exchange it for FedEx Stock? I would be put in the position of making sure FedEx succeeds and therefore, the cut won’t hurt as bad.

    Ronald McCaskey says:

    I have been working for FedEx for 22 years and it makes me proud to work with upper management that shows great leadership in such an economic down turn. Fred you can count on me to continue the “Purple Promise”; I truly bleed purple for such a great company.

    Dolly Dallacarus says:

    My compliments to Fred and his staff for making a hard but a necessary decision.
    I am proud to say I work for FedEx and the sacrifice of having a salary cut in order to help my fellow co-workers keep their jobs is a small price to keep the Purple Rolling.
    I reiterate Mike’s words “Semper Fi Fred”

    Dennis Vo says:

    No one likes the pay reduction. However, we all have to make some sacrifices in order for our company to be successful now and down the road while at the same time minimizing the job losses. The tough but right decisions were made by our leaders today and they have my full support.

    Renee Steeve says:

    My faith in Fedex and its leadership has always been strong and I often brag about it to people who work for other companies! Thanks for allowing me to “keep the faith”. I feel that they are good decisions, for the benefit of all, and I will continue to work hard for this company and remain a loyal employee.

    Barbara Easley says:

    Usually the leaders of the company save their own paychecks first, and let the lowest people on the totem pole go. Those that can’t afford to lose even a dollar are usually the ones to take the brunt of cutbacks.
    I am proud that a Corporation this large did the opposite of what so many companies have done, and started from the top!
    Thanks, from one of the people so low on the totem pole that I can’t see daylight.

    SWebb (Mrs BeeBop) says:

    Thanks again to FedEx for doing the right thing for all of its employees and management. I am still convinced that this is one of the best companies in America to work for. It is one of the best examples of good managment and leadership(something that is lacking in the American work force today) and I am proud of the work my husband does for the company and what the company provides for our family.

    Barbara Burton says:

    I interviewed with FedEx many times before I finally landed my position here. I wanted to work for this company so badly that I just kept trying. Today’s announcement is one of the reasons why I chose to work for this company. The leadership at FedEx is among the best in the world. Thank you Mr. Smith for caring about your employees and taking steps to protect our jobs and this great company!

    Vickie says:

    I understand why the measures are happening. I can’t say that I’m happy but if I can maintain my job and tighten my belt ALONG with everyone I can swallow the disappointment. What I have trouble with is the BILLIONS of dollars spent on frivilous golf tournaments, advertisements for games, race cars and absolute non essential things that we don’t need to run our business. Put money back into the business and leave the extra curricular sports jocks to their own devise. It’s not right that they are paid so much anyway! It always seems that the people that actually do the work are the ones that always have to give!

    Spencer Evans says:

    I know these were some tough decisions for executive management. I commend them for making them. Unlike some companies, our executives are looking out for the masses and not the executives. Looking out for the future of FedEx is in all of our best interest. These sacrifices will make us stonger and more determined to overcome these challenges

    Mary-Helen Burns says:

    I am proud that Mr. Smith took such a substantial cut in pay as well as taking pay from each employee to help with the situation. In today’s market of greed and unaccountability, Fred Smith’s actions today scream of respectability and commitment to his employees. I am proud to be at FedEx and will continue to bleed purple everyday to bring the purple promise to life! Everyone please remember to stay positive! Negativity during these tough times can be a cancer. I challenge you all to remind yourself of one positive aspect of your job everyday!

    Andy says:

    While I agree that this is a good response to the economic issues facing the company, I can’t help but fear some things that really good economists have lined up as distinct possibilities.

    My biggest fear is that the current period of deflation will be offset by the choices of the Federal Reserve to print money with no real backing. This could lead to a further devaluation of the dollar, into regions not seen since the Depression, which would then most likely lead to a period of hyperinflation. That gallon of milk that today costs $3, could go to $5 or more. What I’d like to know is if that happens, will FedEx step up and help their employees to simply survive? A doubling in the cost of living would crush most people, but especially in the working core.

    REPORTER says:

    I agree with you, Eric. Conversely, if we held our elective officials accountable and kept a pulse on thier decisions, the country would not be in this state of affairs. I would encourage all of us to become more acutely aware of the laws being legislated and force the lawmakers to act more responsibly for the country and not just for a few.

    I applaud our management team and wish the best for our FedEx Family.

    fred fortino ZTYRT says:

    Tough times called for tough measures. If other industries took the steps that FedEx is taking, maybe we would not be in this situation as a nation
    FedEx will make it. We all can help. If just 15 percent of the employee’s in every facility, ramp, station, building, warehouse, looks around, looks to see how they can work more efficient, we will make a big impact on improving the company’s , no our bottom line. After all,,,,,WE ARE ,,,,,FEDEX

    MONICA HOPKINS says:

    This is an excellent company. Fred Smith is a great leader and CEO. If he could run for President and still part-time manage FedEx he would have my vote to the end. There is no other CEO ever heard of that cares about their employees as much as Fred Smith does. I have only been here 3 years, but I truly understand why people love FedEx. I love FedEx too!

    Now lets talk about helping cut cost. I believe if we were to start cutting lights off at night we could safe a bunch. Call center lights, offices, conference rooms, bathrooms, etc. The only lights should be hall lights. We do not need tea or hot chocolate. Just coffee to stay woke. I would love to vacuum my own space at my desk and we can put our garbage bags at the end of the hall in a big bin and let maintenece hook the bin up to their bikes and empty it. The only thing we need is someone to clean the bathrooms. The cleaning crew here is not good and it is a shame that FedEx has to pay them for their poor service. We will survive this!

    RJ Yap says:

    This decision from Fred Smih and our execuitve management team is without question the right thing to do. After close to 29 years of service
    I owe so much back to this great organization.
    I count it both an honor and joy to be part of the family of FedEx.
    Thank you for the many years of employment.

    TJ says:

    Adapt, Improvise, Overcome. This is a U.S. Marine motto. As a former Marine, this is what Mr. Smith did for us today in saving our jobs. I have experienced several job cuts in my career and am very fortunate to be working at FedEx now. THis action although difficult will lead to SUCCESS in the long haul. Be thankful you have a job.

    Tough times called for tough measuresIf other industries took the steps that FedEx is taking, maybe we would not be in this situation as a nation
    FedEx will make it. We all can help. If just 15 percent of the employee’s in every facility, ramp, station, building, warehouse, looks around, looks to see how they can work more efficient, we will make a big impact on improving the company’s , no our bottom line. After all,,,,,WE ARE ,,,,,FEDEX

    Peter Sabin says:

    The loss of bonus, matching 401K and pay reduction is tough. But tough is just that, tough.

    Having been the victim of downsizing twice I am glad to see FedEx move in an equitable fashion to spread this burden.

    In the meantime, every cost savings measure that can be taken should be. Perhaps another method to reduce payroll is a voluntarily early retirement program.

    And remember, don’t print the eMail or webpage unless you have to… and this from a hopeless Gutenburgian!! Electrons are cheap. Use ’em.

    Karen Murphy says:

    Despite the personal impact on my finances, I am thankful to have a company that continues to find ways to minimize job loss. I am thankful today for the immediate measures taken today will help me ensure the long term health of my personal goals.
    To continue in the spirit of the executive team, I would like to see an official campaign to solicit ideas from every level to continue to try to find ways to cut incremental cost. With focus on the day to day operations and at a time of limited resources, it is difficult to review and solidify locally the potential savings of any cost reduction ideas. In the true spirit of FedEx, it seems as though a cost reduction idea communication tool could be utilized even after we recover from this unique economic time.

    KF says:

    As an hourly employee, I’d like to extend a heartfelt THANK YOU to all management who are most affected by these changes.

    I realize the sacrifice being made may not be easy on everyone. However, with these efforts I’m feeling hopeful that FedEx will make it through this hardship without job loss at my level, which is where it would begin. I cannot imagine how much more devastating it would have been to read that FedEx was cutting 5,000 jobs, can you?

    May everyone in the FedEx family feel hope for the future and blessed to work for such a fine company who strives to ensure employees are not without jobs in hard economic times. Thank you allowing me to continue working for FedEx and for being proactive in ensuring that I always will.

    Elizabeth says:

    I have always been proud to work for FedEx, but today’s announcements make me even prouder. Even though losing some of my salary will make it more difficult to make ends meet… I still have a job to come to. FedEx could have taken an easier route and eliminated a massive number of jobs. Instead, Mr. Smith has again exhibited the P-S-P philosolphy. FedEx should be seen as an example for other corporations feeling the strain of the economic crisis.
    As employees, we should ensure we do our parts to cut costs and increase productivity within our own organizations to keep this company strong.
    BZ to Fred Smith and executive management for their leadership.

    Cheryl Noland says:

    Everyone is talking about the reduction and 401K changes…and it is all positive. No, no one likes losing money, but we’ve got a job. We’ve got benefits, and we have more security than most of the people in the world. Look at Detroit.

    I’ve worked here 30 years, and I’ve never been more proud of our company. In keeping with our People First philosophy, we can still make our mortgage payments. What we have to do now is to work smarter and harder to make the Service and Profit portions of PSP happen.

    Thanks, Fred. Good job!

    Bob says:

    Still Proud to Work for FedEx after 20 Years! Outstanding leadership that does really care about their employees. Thank you for looking out for everyone. We will get through these tough times together as a team.

    Charles Miller says:

    Being with FedEx for more than 24 years, I have seen and weathered a number of economic conditions. I have witnessed management tell hourly employees year after year that their hours were going to be cut. It would always hurt me that hourly employees were the ones who suffered the sting of an economic down turn. Thanks to Mr. Smith, my faith in Upper Management has been restored. My belief has always been that we all share in the fortunes of this company good or bad. We as a family can get through this time…YES WE CAN!
    Everyday our belief and trust in one another will sustain us…KEEP HOPE ALIVE! We can make this sacrifice and we will come out sronger and better for doing so.

    I am thankful for the openness and transparency seen in how these measures were communicated in this announcement. During this tremendous period of economic uncertainty, I understand why sacrifices are being made. We are committed to providing outstanding customer experience. FedEx is still a great place to work.

    old news says:

    the company put out a memo last week announcing no superBowl ad, plus other cost saving measures within the advertising department.

    Jim says:

    If Fred Smith were President of the United States the WORLD economy would not be in this mess. Although this hurts I can still feed my family and pay my bills and be proud to be working for the best company in the world.

    Thanks for providing for me and my family for 20 years Mr. Smith. You are admired. Those of us that have been here for a long time know this had to be one of the hardest decisions you have ever made. You are the best example of the Purple Promise to your workforce.

    This is a great company and I’m proud to be part of it for 20 years. I look at this as a little “Purple Blood” that most of your dedicated employees are willing and able to shed with these times. You made a good decision.

    Joe Trimpe says:

    We’re all fortunate to be able to still have our jobs. Look around and it won’t take you long to find people just like us that have been laid off after years with a company or the company has folded. I like many others posting here feel that a 5% salary cut is a blessing considering the other alternatives that the coproration could have taken. I started as a Handler and for the last 15+ years have been on the Recruiting end of our business and believe me, we see folks that are desperate for a job every day. I think the executive leadership has done the “People” thing for sure. It will be tough, but it’s our reality for everyone in this country and across the world. Count your blessings folks…

    Angel M. Proctor says:

    Short term sacrifice for long-term success!!!
    Matthew 6:25-33

    Michael Arbeene says:

    Semper Fidelis to you!
    Well said…..Well Said!

    Jelena says:

    Thank you for allowing us to keep our job! I beleive we work for a great company, some other firms are not even considering pay cuts, but just laying off people. THank you!!!!

    John Genua says:

    While not without its pain points, the plan outlined by our Chairman is an appropriate response to the fiscal challenges facing our company and industry. I am confident that we will weather this storm together and that these sacrifices will contribute to our future growth and success.

    Suren says:

    Fred, Thank you for strategically positioning us to handle this economic storm. We’re behind you all the way. Now that DHL is out of the picture we can focus all our efforts on bringing down Big Brown.

    Denise 25 yr employee says:

    I’m still thankful to have a great job and for all FedEx has done for me & my family over the last 25 years. I hope every employee will focus on cutting costs on a daily basis – in big and small ways. If it comes to layoffs, I hope they will be done based on job performance and contribution – for the most part FedEx employees are the best, but there are some who do not carry their load and are still enjoying a free ride – they’re probably the ones doing the most complaining about the pay cuts. Also, I don’t think some people understand the value of advertising for a business such as FedEx.

    Kim says:

    Your leadership is appreciated and I am still very proud to represent FedEx~!

    Theresa Bradford says:

    Mr. Smith,

    As most departments probably did this morning, our MD gathered us together to discuss the pay cuts. When asked what we think about these changes we all agreed it was the right thing to do and stated we were glad to have a job. Then we broke into a round of applause. The efforts of you and the management team are appreciated.

    Thank you.

    FedEx Corporate Communications says:

    In response to questions about FedEx running a Super Bowl ad this year:

    FedEx will not be running an ad in this year’s Super Bowl.

    Greg says:

    A corporation is not a person. It’s an assembly of practices designed to benefit customers, shareholders, and in turn employees. FedEx is not a person, but having FWS at the helm makes it darn near good as.

    I’d wager this sage approach to the actions we face came straight from FWS’s head and heart, reflecting his sterling leadership character and commitment to the PSP philosophy. If it was his call, history may judge it one of his best leadership decisions. The wisest course is neither the easiest nor most popular.

    Indeed, it’s strong action no question, (depending on 401K elections and yrs svc, up to 20% total haircut short-term, 5-9% permanent) but it’s SMART. Less hardship on the economy, lenders, and we’re better positioned for economic rebound. And it supports a position of strength for our teams and unit cohesion.

    The big dogs always lead the way— look for other companies to follow this example as we look toward the ugly end of the recession in ’09.

    Jason Goldfeder says:

    We are all behind you and the rest of the Senior Leadership team at FedEx. We will come out of this economic challenge a stronger and better company due to the difficult decisions you make today.

    haggis says:

    We work for the Best Company in the Best Country in the world.

    Kathy Wilson says:

    I worked for FedEx for twenty five years- 19 years in Memphis and 6 years in Panama City.My career began in 1978 with FedEx in the accounting offices off of Democrat. I am proud to say that FedEx is the company I worked for. I have moved on to a second career with The St. Joe Company and I am now your customer. You give us great service and we are hoping you will be a part of our new airport and maybe a new distribution center.

    Mr. Smith I have spoken of your example of how you took care of your company during the early years and it is good to read this and know that you are still are doing that. Merry Christmas.

    Steve Steffens says:

    I had seen that, and thought it wise. Has there been any decision as of yet as to whether we will continue to sponsor a NASCAR team with Joe Gibbs Racing?

    mc says:

    Although no one likes to take a hit in the pocket, the hourly employees have recently felt it the hardest. It is important that we ALL stick together and have a united front. The front line employees deserve to have a small reprieve from there financial hits and doing this shows that we are all in it together. I am thankful every day to be able to walk through these doors still employed.

    Elizabeth restrepo says:

    fedex will preserve and come out smelling like a rose when the economy is on its feets.faith will overcome all obstacles.

    Jeff Davis says:

    I applaud the difficult decisions throughout the past year to maintain our healthy company in challenging times. Kudos to senior leadership for being fiscally responsible and accountable for their position and role at FedEx. Pick up just about any newspaper any day and you can find an article where a company did not make the difficult decisions timely, and that organization is paying a higher toll now. I gladly relinquish some income to maintain our employee base, fiscal health and our bright future.

    John says:

    In times like these, I would prefer to believe I have retained 95%, as opposed to “lost” 5%. I will now work harder than ever, and have the faith that FedEx will bounce back.

    Angel Morales says:

    All my respects for Fred. He is a true leader. These are exceptional difficult times that need exceptional strong leaders. I believe that he has a good vision for the future of the company and I believe we all will give him all the support that expects from us. Of course I will keep my prayers so God gives him the wisdom and knowledge to lead this great company to new and better horizons.

    Tonya Tate says:

    I’m grateful that I work for a company who truly walks out the People First philosophy. In these tough economic times, there were many other cost-saving actions that could have been implemented but you thoughtfully chose one that is both measured and fair.

    I just started my 11th MBA class on Tuesday. In the introductions, I noticed that 8 out of the 20 students in the class were unemployed. We are in serious times and many, many people are suffering. All of us who are still working are blessed! I’m glad to be employed and I refuse to lower myself to complian about a 5% pay cut, the loss of 401k matching, or any of the measures taken today.

    Let us all count our blessings, I’m sure you will find that you have many more reasons to be thankful than you do to complain.

    Lisa Perkins says:

    While reading your letter Mr. Smith to your employees, I came close to tear for I know this was a difficult decision for you to make, however I am confident with you at our helm that we will get through these perilous times. I have been an employee of FedEx for 11 years now and I have always heard from the more “tenured” employee’s what a great leader you are. They are all right! I have always been amazed by the great business decisions you have made especially during the tragedy of 911. We still were able to move our freight and deliver to our customers. BZ to you Mr. Smith for your willingness and forthrightness in “doing the right thing” and for keeping “People” in the philosophy of this great company. I am proud to wear the Purple and Orange and look forward to many more years of serving our internal and external customers. I’m in it to WIN IT!

    Daniel says:

    As an hourly employee (offload, outbound load captain) at the Memphis hub, I just wanted to say thanks to the team that came up with and approved this. A lot of us were nervous about potential layoffs or restructuring and there were a lot of rumors about us taking pay cuts. I hate that anyone had to take a cut, but it’s honestly shocking to see that a company as large as FedEx took such steps to ensure that almost no one lost a job and the so-called “expendible little guys” were looked after – especially when you see what’s happening to the front-line employees in the American auto industry. We really appreciate it, and I think a lot of us are more proud than ever to work for the company!

    Over 20yrs for the Best Company. You’ve again demonstrated Leadership in challenging times. Fedex employees are the best and continue to deliver OUTSTANDING customer service . This is a small bump in the road and with our continued success and our combined willingness to overcome will be rewarded.

    Angel Morales says:

    Go Fred. Smith
    Fred. Thanks for you strong leadership. This is what’s needed in these difficult times we are facing. I know for sure that we are going to survive because you are doing the right thing for the right reason and that is what matters in this buss. enviroment we are in. Now I only pray to God so he can give you the wisdom and knowledge to lead this great company to higher and better horizons that await us to overcome.

    Marie McVay says:

    I am a “seasoned” employee with almost 26 yrs. of service. Fred has once again proved his “People, Service, Profit” philosophy by making a hard but fair decision to keep us all employed in these tough economics times! A five percent cut is a small price to pay for full-time employment. There are a ton of men and women filling out paperwork at the Unemployment Office that would love to be in our shoes.

    By keeping the Purple Promise and delivering on our commitments, we will survive and be ready to strike when the economy turns around again and it will turn around. We’ve worked hard for 35 years to promote and protect our brand and now is the time to put extra rubber to the road!

    The future may seem cloudy but with Fred in the pilot’s seat and our executive team helping with the navigation, we will continue to fly those golden shipments globally and on time!

    BZ Fred!

    Lawrence Smith says:

    In the words of Dr. Martin Luther King Jr. “The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands in times of challenge and controversy” from a 21 year employee, thank you Fred for standing very TALL! May God bless you, FedEx and our country!

    Corey L. Douglas says:

    Hi guys,

    I’m Corey L Douglas and I work at the Los Angeles Ramp. Mr Smith first and foremost, on behalf of all the employee here I would like to thank you for the pay out this fiscal year term and for the security of a job. This is absolutely one of the best jobs that i have held in my lifetime.

    I also want to thank my manager, James Barnes here at the ramp. This guys is one terrific guy who without a doubt is a people person at the same time will make sure the job gets done and done right. I can honestly say it is my pleasure to come to work everyday and do the job above and beyond the call of duty working on the James barnes team.

    Thank you guys.

    Corey L. Douglas

    Cindy says:

    You GO Fred! We’re all right behind you and you have ALWAYS have been so incredible, so inspiring. I can tell that a few who have posted haven’t been around long or understand the commitment, the adventure, the ride or the success that you have shared with all of us.

    YOU GO FRED! We’re RIGHT behind you and those of us that HAVE been around…are right here…we always will be. GO FEDEX!

    Ryan says:

    I hope we won’t have to take more action as this economic storm plays out. However, judging from the news today, we know Fred will make the right decisions in these tough times. Let’s hope that these, “shock absorbers,” hold out.

    Raymond Jacoson says:

    I understand the need to take drastic cost-cutting measures and I appreciate that FedEx has never laid off. Mr. Smith’s 20% pay reduction and the 10% and 7.5% reductions for the senior officers are admirable. But I can’t help but question the 5% across-the-board reduction for every salaried employee from VP level on down. This should have been staggered by pay grade. A 5% reduction for a VP might mean one less vacation to Aruba. A 5% reduction for a grade-level-21 or -23 employee might mean the mortgage won’t get paid this month. This is not equal sacrifice.

    I have been proud to work for FedEx for the last 17 years, and I will continue to give the 100% effort I have always given. But I’d be lying if I said my morale wasn’t seriously shaken by this announcement.

    Ryan says:

    I find today’s announcement regarding salaried pay cuts particularly interesting, especially in light of Mr. Smith’s recent article which discusses why industrial companies (such as FedEx) cannot afford to offer premium pay and benefits packages to entice graduates from top colleges.

    I wonder how this pay reduction will affect our company’s ability, not only to attract outside employment for management positions, but also will ASPIRE candidates now think that the costs of entering management outweigh the benefits? Why would they want the additional hours and stress for little (if any) increase in pay?

    Paula Kellough says:

    FedEx is a wonderful company and all the other companies should be following their example instead of asking for a handout-bailout. I know taking a cut in pay and other perks will be tough but much better than having a 100% pay cut by having jobs cut. I will use FedEx only from now on and will encourage others to do the same. God Bless you and the employees of FEDEX!!!

    W. Webb says:

    I started work at FedEx almost 17 years ago to the day, and had the pleasure of meeting Fred Smith on my first day on the job. He shook my hand and welcomed me to the company, making quite an impression on a rather nervous newbie. Over the years I’ve had the pleasure of working not only with Fred, but also most of our other top executives in my position in Corporate Communications. I can honestly say I’ve never been more proud to be part of the FedEx family than the last couple of days. Most people with any common sense knew something had to give with the current economic conditions, and I think this is the most equitable way to hold the line until the economy turns around. I’d like to thank all of the decision-makers for trying this somewhat unique approach instead of going down the more-traveled layoff road, which I’m sure would have made Wall Street much happier. It’s nice to see FedEx do the right thing for the employees instead of the analysts.

    TT says:

    While I agree that there was a need to be proactive with cost cutting measures to ensure the long term survival of this company, I take exception to the way this was done. My fellow managers and I were not so lucky to be informed of this directly by our upper management. We received the email version, not a conference call by our managing director. When we approached our terminal manager, he was unaware of the changes. Way to make us feel like numbers, rather than people.

    Also, lets call this 5% reduction in pay what it really is. Depending on your level of bonus (mine is almost 10% of my pay), I am losing 15% of my potential earning power, not just the 5% of my salary.I do applaud the attempt to keep the company profitable. I don’t like the way some managers allowed us to be informed, nor do I think the timing (a week before Christmas) is good. Hopefully we will see better times soon.

    Brad Jackson says:

    I would agree with all these comments, but I ask the question: why cut any employees pay before you cut the dividend????? The people come first!!

    Pascal LEMAIRE says:

    I’ve been working with Fedex for 15 years now and it is so far the best place to work for.
    I was so impressed about the simple but so true – People Service Profits – After so many years with Fedex I have learned more about this PSP philosophy. For me the PSP is like something that is adaptable to whatever situation we are facing but never the 3 at the same time. And today, more than ever, we must all focus on the profits and as a team for will again succeed on this new challenges and I believe more than ever that this is the right decision.
    Pascal Lemaire – some encouragement from France !

    john d quinn says:

    As a proud 35 year employee, I say to everyone who aches and yearns for that old time PEOPLE FIRST philosophy, it’s back and better than ever. Our ship is sailing again, thanks Fred.

    I came to this Company 25 years ago with no career expectations. I only expected an honest day’s wage for an honest day’s work.
    The enthusiasm and Corporate culture I experienced were addictive.

    I have been fortunate enough to receive from this Company nearly every time I have asked.
    Now, the Company is asking from me.

    Do I owe them?
    You bet I do.

    I owe them for the opportunity. I owe them for the education and investment they have made in me. I owe them for my best friends, who I met working at FedEx. I owe them for the great FedEx careers of my wife, my brother, and his wife.

    In short, if the Company needs my help, just tell me when, where, and how much, and I’ll roll up my sleeves and give ’til it hurts. Its my turn to give back, and I’m confident we’ll come out stronger for it.

    Michael says:

    Better to lose 5% then have to see a colleague/friend lose their job, Fred make the right call. It be an hardship for sure in my personal household, as my spouse got laid off today, but still the right choice for FedEx and its people.

    FedEx salaried-exempt Employee.

    palma lykins says:

    I know these are hard economic times and I understood when they cut the hours of the hourly employees. We all feel its better to have shortened hours and still have a job, but what impressed me was when the email came from Fred Smith that he and the other salaried people would take a cut in pay. Its great to work for a company that is fair across the board. I am a former Watkins employee, but i am proud to be working for a company like Fedex.

    Jacques R.Vincent says:

    I have been mentioning this for quite a long time that Fedex should for at least a year freeze the hourly employees’s wages and salary of course and see what happens…the economy is low and for a reason. it’s nice to give and now it’s time we take back, lets keep our company ahead, above the water. I for one willing to make that sacrifice to keep my job. the ones complaining should look at their lifestyle…proud to be part of the team…

    Joseph Salisbury says:

    I have grown up with Fed Ex Ground. My father was one of the first RPS contractors “back in the day.” I started as a package handler in college, was a driver for 8 years and am now in management. This company is “in my blood.” I applaud Mr. Smith and the rest of the officers for having the forsight to make the tough choices now in order to insure company strength in the future. Although these changes are not easy and will require sacrifice by everyone, we can rest easy in the fact that we still have employment, and that this employment is with the greatest company in the world. It is during times of adversity that one’s true character is revealed. I truly believe we will overcome this momentary setback and continue to delivery the Purple Promise unabated.

    Chris K. says:

    From a former US Marine and 15 year employee,it makes me proud as hell to see Fred and managment lead by example !!

    Chris

    MEM says:

    For those of us that are struggling, its not only the 5%, you have to add the no increase in 2009 between 3-3.5% and the increase in GDP which was according to (www. bea. gov) is another 4.7%. This totals at least 12%, for an exempt that makes $50K, it will be a reduction of $6K per year.

    I still love to work for FedEx, its an great company. But there are other areas that could have been cut, like useless vendors and contracts. These contractors and vendors make a quote on FedEx like we were the Federal Government. Please check these contracts, it does not make any sense to hire a vendor to paint a courier van for a small scratch for 1K, does it? It does not make sense to hire a contractor to run a computer IT cat 5 wire when the IT guys can do it. It does not make sense to hire a cleaning/janitorial service for a facility so small that the employees can take care of. Check how much are we paying for those…

    As I said, FedEx is an awesome company, we will overcome and be better than ever.

    Merry Christmas to all…

    Martin says:

    I am realy proud or your message Mr. Smith and we all trust you here and will do everything to be strong during this hard time. LETS GO ALL OF US CAN MAKE IT HAPPEN.

    Chris Pinkney says:

    My wife and I have a combined 47 years with FedEx. The other comments hit all the salient points. This move is an example of true leadership. Bravo Zulu, Mr. Smith

    Victoria Foth says:

    Amen. We work for an amazing organization.

    I have worked for other companies that had very little regard or thought as to layoffs – in fact, there was one company where it happened regularly, around October or November each year until one year when it was my turn to get the “notice” and I was so very fortunate to have the opportunity to work for FedEx.

    I started as a secretary 17 years ago, earned my associates degree and my bachelors (thanks to FedEx Tuition Reimbursement), worked my way through the ranks (because we hire from within -thanks to FedEx) and now am a proud member of FedEx Solutions/Customer Value Team.

    While this decision is tough for all of us – (on a personal front for me I’m already struggling going through a divorce for the last 2 years) … However, I’m confident that it was necessary to preserve our futures so that we can enjoy the possibility of more dreams to be fulfilled.

    Walter Moore says:

    Cut costs: work from home.

    Is it possible to implement a work-from-home policy, for those whose job make it possible? With enough people working form home, we could close office space. This could save tons of money on the costs for lights, water, heating/cooling. It would also help the employees by not having to spend the time/money to drive in to work.

    Bill Weide says:

    Thanks for your service and your comments. Semper Fi. But, hey. I did not think there was such a thing as a “former” Marine.

    Scott Ponton says:

    Having been an employee of FedEx for more than 24 years, I am dismayed at the decision not to include EVERYONE in the hardship of a pay reduction. The second highest compensated group within FedEx Express came away virtually unscathed! I have read the Company position on the reduction of hours worked, but I find this very hard to swallow in regards to the group in question. To exclude this group, due to what I perceive as the fear of reprisal, is a disservice to everyone in the Corporation that has been effected by this, and flys in the face of a true PSP philosophy. Anyone within FedEx Express/AOD knows what group I am talking about, and it’s not pilots.

    WALTER BROWN says:

    I am very blessed be working at fedex,close to 20 years of perfect attendance 0 sick days, but i feel as a hourly ee, we have been cut enough with hours reductions, not able to get proper equipment, all the payment inccentives, like profit sharing,map,lots etc. it`s about time the ones on top feel what the hub ee`s go thru on a regualr basis.

    Bob Barnett says:

    Refreshing corporate responsibilty – After 20 years at Fedex, I remain a proud member of this organization. Accepting pay cuts concurrently with their employees is a testament to our management team. The FedEx “family” will sacrifice for the common good to weather this current storm. Our resolve will make us stronger and more successful in the future.
    Merry Christmas!

    Doug Read says:

    I have worked for Fedex 30 years, Mr. Smith and Fedex has never let me down! I am very proud to represent Fedex. The company has always come through for me, now it is my time to come through for the company. I proudly give up my 5%, so we all can have jobs with this great company.

    Mohammad Ali says:

    Mr Smith, I am very proud to be a FedExR and work for this great company, where we work everyday to live out the purple promise.
    Thank you very much

    Sarah says:

    I worked for this company for several years and I would have to agree that this is an excellent company! It will be painful for the employees but it is an excellent move to save jobs! I would recommend this company to anyone for employment!

    Tina Goldsmith says:

    I have to admit when it was announced that there was going to be a permanent pay cut for all salary employees it hit pretty hard. It’s a lot to absorb; who wants to lose money?? But, it’s nice to know that our own CEO is willing to take the hit right along with us to support the prevention of job losses. How many CEO’s in Corporate America can say they are willing to take the loss right along with his team? Not many I’m sure!!!! !!!! This is just proof that Fred is truly loyal to his team. In reality any pay cut is devastating but in this game called economic hardship, it’s better way than having no job at all.

    judson seelye,ii says:

    I want to say simply thank you to all management and salaried personel for focusing on “our situation” and taking the necessary steps to preserve our jobs and company. Perhaps if other companies had focused as such, the bailouts might have been unnecessary. Again, thank you very much.

    mark says:

    consider the savings: part time employees at fed ex freight dont receive health benefits; make the same true for All part time fed ex employees? True, tough economic times, but I feel positive Fed Ex will still make the profits. Sound fiscal leadership…

    Randy says:

    These are stressful times for our company, especially on the LTL side. The pay cuts will hopefully save jobs, however, there have already been work force reductions throughout Freight & National. We need to be sensative to our co-workers, especially those that feel vulnerable to possible lay-offs. Making off handed comments like “It could be worse,” while true, does not help the situation or address the anxiety that someone may be experiencing.
    I am proud to be a part of FedEx. My position was eliminated a year ago and thank God I was given the opportunity to come back in Aug. Pulling together as a team means we recognize people are going to deal with this crisis in their own way, and we meet them at their need. Isn’t that practicing diversity and the Purple Promise?

    Sienna says:

    My honest opinion: Such actions usually paves a path for a “socialism” where high performers pay for the poor performers so that the later can keep their jobs. The earning call yesterday was a good opportunity to cut “fat” once for ever where not needed.

    laverne bobbitt says:

    I am thankful to work for FEDEX. The insurance is great and my pay is excellent. I have been working for FEDEX for 18 years. Thanks

    Skip Howard says:

    After the news appeared in the Commercial Appeal online yesterday, and the comments began to be posted, I submitted the following:

    As a loyal FedEx employee, I echo the comments of many of my fellow employees above when I say that if these pay cuts keep the company in business during this recession, and keep benefits for employees intact, and keep all these employees and their families secure, then it beats not having a job. UPS has laid off hundreds across the country, and there will be more layoffs to come. Sixty-five percent of the UPS operating cost is labor; only 40 percent of FedEx operating cost is labor. Why is this? FedEx is trying NOT to pink-slip its employees by administering these pay cuts. That is commendable. Remember that it was not Fred Smith in front of Congress last month stating that he would not be comfortable cutting his salary, but it was the head of one of the auto companies. Mr. Smith is leading the way by taking the biggest salary cut of anyone. He demonstrates by this gesture how much regard he has for both this company and its employees. Corporate America could take lessons from this example. In the 11 years I’ve worked at this company, I’ve never met or even seen Mr. Smith in person, but if he personally asked me to walk through hell tomorrow for FedEx, I’d do it without a moment’s hesitation. The company has invested much capital in its employees, and now it is requiring that the employees invest some of that capital back into the company. Remember President-Elect John F. Kennedy’s address before the State House in Boston on 9 January 1961 during which he stated: “For of those to whom much is given, much is required” (a paraphrase of the Parable of the Faithful Servant in Luke 12: “From everyone to whom much has been given, much will be required; and from one to whom much has been entrusted, even more will be demanded”).

    My feelings today are just as strong as ever, and I am proud to work for a company that puts its people first. Five percent of salary cut vs. 100 percent of job loss? It’s a no-brainer!

    James Whacher says:

    There’s really no better outcome than this! After hearing all the recent job loses ALL over the country….we should be greatful, as it could have been ALOT worse. Example = DHL.
    There’s plenty of business out there that will come back to us, when the economy recovers. We take this on the chin as a team, a family…saving greater hardships if we lost jobs.! It was our only choice as a company made strong and held TOGETHER by it’s employees.
    We all have vital jobs to do, remember. It’s PEAK Φ and Santa needs us!
    We are all ‘Wizards’ at our jobs. No One knows how we do it everyday!!
    And that’s why WE ARE FEDEX ~ as is shown to ALL the World,
    in this slick Pro FedEx video — >

    http://www.youtube.com/watch?v=IX-GlxxyNgY

    Be Proud.! We will survive.

    Teena says:

    I am in TOTAL AGREEMENT with you Denise!

    David says:

    FedEx is all I’ve ever known. I’ve been proud to work for them since the day I was I was hired a the age of 19. As a ramp agent in Memphis, I love going to work every night while most people sleep and doing everything possible just to get those planes out on time. Some nights it even seems impossible, but you just keep on keeping on, till it blocks out of the gate. Those jet engines are music to my ears. Thanks Fred for continuing to give me this opportunity to deliver the purple promise.

    Teena says:

    From me and my family, thank you Fred for being such a strong leader. You are a leader that leads by example…and I RESPECT that. Your action makes me proud to be a part of this company.

    Robyn says:

    Thank you to FS and our Executives for leading by example, for not allowing yourselves to be corrupted by greed and self-indulgence, for making the right decision no matter how difficult it must have been, and for not taking the easy way out.

    May all of us not forget that FedEx gives us 100% to start with (and yes, we are well-compensated), and there are so many others not nearly so fortunate. If you can’t stand to lose the 5%, remember that we also have attrition goals to meet. 😉

    The rest of us will stand behind our excellent leadership and we are grateful. We will buckle down and give it our all. We all can see why it is so easy to have pride in purple.

    Patty Dameron-Lenckus says:

    I am very proud to work for this company. I am also very proud of our Leaders within this Company. I am here for the long haul and I will do whatever it takes to help to keep our Company strong through this economic struggle. I would gladly give whatever is asked of me to be part of this team. A small percentage of my pay is such a small sacrifice for a company that has done so very much for me.

    Roberto Lozano says:

    I have great admiration for leaders that ask their subordinates for sacrifice, but have the decency of leading by example and sharing a higher quota of the burden for themeselves. The best leaders of the world have always being at the frontline leading with their example, and that is what Mr.Smith has just done.

    My respects and admiration to our leader for setting such a high-standard on corporate ethics and social responsibility in the mid of an economic environment full of ponzi schemes and “leaders” that have brought entire organizations down with them.

    I have been in this company for ten years and I am planning to retire here with my boots on fighting on my post. These actions will definetly motivate me to redouble my efforts next fiscal year.

    Lowen says:

    How much thought was put into cancelling the quarterly dividends paid to shareholders? What about some of the millions of dollars spent on superbowl ads or the BCS Championship? Just curious what the trade of would be for those expenditures? There are many of us commited to making Fedex the best company in the world, I just want to be sure they are commited to us as well.

    Lysle Cease says:

    Nuf said….Fred for Prez!

    Debbie Stephens says:

    As a 25+ year employee, I am very proud of our leadership, how they think of preserving our jobs, when so many other companies lay off their employees.

    As administrator for the Express US/CAN/LAC Purple Promise/Humanitarian Award program, I read many amazing stories about what our employees do for internal and external customers. I am VERY proud of what our employees do on a daily basis to serve one another and their customers.

    We will make it through this tough time and be even stronger!

    Thank you, Mr. Smith for your support and for your creation/vision of FedEx!

    Always Faithful says:

    Semper Fi Mr. Smith;

    Thank you for setting the example for true Leadership.
    Many of us within FedEx were already going the extra mile contributing to other agencies that were asking for extra help during this economic crisis. Would it be too much to ask that we have the ability to do the same “voluntarily of course” to our own company as well? Is there a way that we can voluntarily donate contributions of salary above what is being required?

    Coleen arrell says:

    Why doesn’t Fedex save money by offering ALL employees a lump sum of money for NOT using fedex medical benefits. I am sure with all the money FEDEX spends on medical benefits. There has to be a savings. MY husband has better medical benefits so I use his. I opt out of FEDEX. i SHOULD get some compensation for not using the benefits. I am saving FEDEX ALOT of MONEY!!!!!!!!!

    Lori DeBrunn says:

    I also thank you for the foresight, pondering and action to keep FedEx strong during this time of challenge. I am a new employee (under a year) and from day one I could see that this organization was “put together” and had a “team attitude.” I am fortunate and thankful to be a part of it.

    Thank you, salaried exempt employees, for your sacrifice. I will have you all in prayer for peace and health.

    Have a save and wonderful holiday.

    MEM says:

    There’s no way I can be upset regarding the changes within FEDEX because I STILL HAVE A JOB! I do understand how people’s first reaction is to be upset but once the news “settles”, reality should kick in and make everyone realize that they could have been given pink slips as many other companies chose to do. What I don’t understand is how FEDEX can continue to use vendors within FedEx Freight, Express, etc. areas and move full time employees to dock positions, less hours, etc. Why are vendors constantly pulling up on “the yard” and operating runs that employees should be doing? That just doesn’t set well with us.

    Nickie Larson says:

    This recent announcement was most likely anticipated by most, however, I feel the humbling communication given by our leader and role model, made this something to easily respect and accept considering the sacrifices afforded by all.

    Our 160 employee location proudly continues to support all existing and future efforts to help ensure the long term success of our organization and most importantly, the safety and security of our world wide FedEx family.

    Let us all count our blessings, as we will find many reasons to be thankful and supportive to all.

    Ray Riley says:

    An option that would make sense for employees is an option to allow a salary reduction of the amount of the match coupled with maintaining the 401(k) matching contribution. This would allow employees to take advantage of the tax benefits of a company match contribution. I am no tax lawyer, but if the law allows a choice, this would be a great option for employees who plan to keep contributing to their 401(k).

    Keep up the good work in planning for the future. I got out of real estate in 2003 and came here because of this kind of planning and because the current economic situation was obvious even back then.

    Marcia says:

    After 24 years with FedEx I have learned to trust the decisions that Fred makes. I may not like this one but it is what it is. If I have to make a personal sacrifice now in order to help insure that the company is alive and healthy in the future then that is what I have to do. I am, after all, a part of this company.

    FedEx Manager says:

    As a manager who was affected by the most recent news, I have never felt so proud to be a part of the FedEx family. I have worked for FedEx for 10 years and am so thankful that “WE” have a job to come to everyday. I am so grateful that none of my team members were affected. I am so grateful that our leadership team sacrafices right along with the rest of us, which you can’t say for many corporations. We are a corportation, but we are also a “family.” We take care of each other everyday and this will only make us stronger and smarter. Take my 5%, so my team member who is struggling to put food on the table, can continue to. Take my 5% so my customers can have a place to come everyday and receive the customer service they are used to receiving.We will come out on top in the end and I will always “Make Every FedEx Experience Outstanding” because of the leadership we have in this company. Thank you to all who had to make this hard, but needed decision. I will survive the pay cut, and I know I will be rewarded everyday with or without 5%.

    Bob Barnett says:

    Responsible corporate leadership and a solid foundation of exemplary employee spirit will be the underlying factor in the continued success of FedEx. In the current environment of corporate mis-management and greed it is indeed refreshing to see the employees and management of FedEx standing strong and sacrificing side by side in their resolve to make FedEx viable now and in the future.
    As a 20 year employee I am proud of our FedEx “family” and our resolve during this unfortunate downturn in our history. BZ to All and Merry Christmas from FedEx in Germany!

    Drew Taylor says:

    Proud of our company. While the global markets are creating difficult conditions to operate and sustain business at previous levels, I am proud of FedEx for taking aggressive measures to be responsible corporate leaders. By taking decisive, aggressive actions early in this cycle, Mr. Smith is preserving the overall success of this great company and the success of it’s global workforce. History will mark Mr. Smith’s legacy as visionary.

    Marco Franck says:

    I’ve come all the way from Belgium with my wife and children to work for FedEx in Memphis. I ‘ve been 16 years with FedEx, 15 of which I worked in the EMEA. In this difficult economical crisis we all live in today I am very supportive of Mr Smith decisions. It proved to me, my wife and children (4) how much our company cares about us as individual human beings. Hope this says it all!
    I wish everybody on this small world a happy holiday season.

    Joy says:

    This poster pretty well sums up my feelings. I’d rather have all of us tighten our belts a little to help protect the jobs of all of us. I have complete confidence in the wisdom, leadership and integrity of Fred Smith and the executive management at FedEx and am grateful to continue to have this company to work for after almost 25 years. Why don’t some other companies handle their problems in such a reasonable and equitable way? We should quit squawking and look for ways to make this company financially healthy again. Mr. Smith has led by example. We’re all in this together; let’s act like it!

    Michael Brown says:

    In my assesment, the leadership of FedEx has a long history of making sound decisions that support our presence in the world. This decision is just another one of those many decisions that we honestly needed our leadership to make in the best interest of all involved. I can only imagine how difficult the decison was to take the needed actions, and I want to thank Mr. Smith for being a great leader of courage and example during these times of uncertainty. As we all know, these changes are not easy requiring much sacrifice and testing, however by the example that has been set, we can embrace the fact that the race is not given to the swift nor to the strong, but to the ones who endureth until the end.

    I am prayerful that our best days are ahead of us!

    It’s Purple Promise Time …

    Tyrone James says:

    A customer walked in my location this morning and said she was so proud of FedEx, because of what our management team was doing, by taking a pay cut starting with the CEO, to protect hourly jobs. Add that to an already long list of proud moments working at FedEx.

    Michael says:

    As hard as it is to take this news in during the Holidays, Mr. Smith, you have acted in the same manner that I would have if this were my company. The main thing that makes this easy for me to stomach is how good this company has been to me and my family. When the good times have been there, so has this company’s support for my family, therefore, when the bad times are here, so should our families support be for the company. I’ve been spending the last two days telling my employee’s to “remember DHL,” and to be happy that we have a company that is willing to preserve our jobs for us, while reminding them that the best thing for us all to do to grow our business is to sell the one thing that we as a company can, “On Time, with superior customer service.” God Bless, and Have a wonderful Holiday season Mr. Smith.

    PC says:

    Agree, 100% I would take the cut permanent if that was the case…

    Casey says:

    I have been a proud member of FedEx for eleven years. And to know our company is able to make their own cost cutting measures and find ways to survive without being at the point of asking for government bailouts makes me even prouder to be associated with FedEx. To prevent the fear of the American public of layoffs other American companies should take a look at what Mr. Smith has done to keep his employees working. A laid off worker only puts a greater strain on the economy and our weakening unemployment systems.

    Bruce Phillips says:

    There are articles out there already slamming FedEx for the cuts that have been put in place. I strongly disagree with them. These articles are backed by the Teamsters. They are just pushing to get in the door. My experience with Unions does not leave me to want them in my work place. There is no perfect job, but FedEx has done very well in trying to keep job security for loyal employees. Unions are for Unions not for the employees or employers. These cuts may look to be a negaitive now but down the road they will be part of a strong company’s history. I will be happy to take a small cut in my wages to keep my work group together. Let all FedEx employees tell the Teamsters to leave us alone, we are just fine the way it is.

    F. Mejia says:

    I strongly agree with this !!!!! Ther’s a lot of stuff around each terminal that “WE” the employee can do, Instead of hiring different crews to do the jobs that we can do….

    Happy holidays to all !!!!

    employee says:

    It’s a great thing they are doing to save jobs now everyone needs to pitch in and help. Little things we do every day or night as in cut cost in damage take care of what you have to work with that will cut millions a year in repair alone.Go back to the old days when you took pride in work not just here for a paycheck this is a great place to work and I know we all can help in diffrent ways.WE take care of our customer’s whoever they are from being diffrent departments to the customer their self.the comany will make it through.

    manager says:

    Not to mention our purchasing policies in place to “Save us money and give FedEx purchasing power”, which keeps us from ordering supplies locally and helping our local communities. I just ordered a fax machine through our purchasing department, per company policy, for $675…..I can go to Office Max and get a fax machine for a whole lot less and replace it yearly with an overall cost savings…..we need to dig in to some of our crazy policies. Believe it or not, your field management is capable of making fiscaly responsible decisions……….

    nick says:

    Why all three I can understand the bonus and the 401k but a pay cut as well? These are not easy times for us to put food on the table and take care of our families, I understand the logic behind trying to perserve the long term success of our company. I have spent over ten years with this company and now I ahve to get a second job just to be able to be compfortable.

    Dan Reed says:

    I’m glad to see our management team taking necessary action to help reduce spending. What really bothers me is the fact that we still have over-paid under achievers sitting around the company collecting paychecks during these economic troubling days. My team is a very small group of team members (11 individuals); in our group alone we have two highly paid Non-Workers. They produce just enough to say they work for such a fine company as FedEx. Perhaps FedEx will consider cutting the under achievers out of the picture.

    Dan Reed
    564353

    mike says:

    hey mark, those part time employees work just as hard and in many cases harder than some full time employees, thats not a nock on the full timers, just that the dedication and performance is just as good and by the way, many part timers save the company a lot…..think about it.

    Mickey says:

    This is better than laying people off.

    My question is: Will Fred Smith, Member of the Council on Foreign Relations, cut the $30,000.00 annual contribution for Federal Express’ Corporate ‘Premium’ membership in the CFR ?

    Brian says:

    I just want to say that it will make the difference in the people we have … they can look at Fred Smith and say he cares … and to that we should care too. I have been a part of Kinkos off and on through the years and now very proud to be part of this company FedEx a company that respects and cares for it’s team. It is a challenge for the cuts and happy to see long time team members not be laid off or left go …
    Thank you Fred Smith for being the positive in a negative time!

    LAX EE says:

    Mr. Douglas, with respect you do not speak on behalf of all employees in LAX. You have only been in FedEx for 1 year and you are not salary employee. I request that you re-post the statement with correction.

    Also if James Barnes is a GREAT manager SUPER he deserves the applause, but please do not speak for all the employees, it just does not FEEL right…

    Thanks Corey,

    Cassaundra Epperson says:

    I have only been a FedEx employee for 6 months, but This is the best company I have worked for. I am continually impressed by the way FedEx takes care of it’s employees. I thought the decision for the pay cuts was a necessary, but very tough decision to make. Thank you for making that decision and ensuring that I would continue to have a job. I hope that other major companies can look at the example you are setting and follow it so the whole US can regroup from this recession.

    Rosaria Eskeranli says:

    The fabric of this Corporation is it’s “people”. Thank you for your leadership, and for preserving ‘the purple promise’. I am honored and privliged to be a part of this great Organization!

    Bogey says:

    Very happy to be employed, just one question: Should we still continue NASCAR and contribute 10 million to the PGA tour?????

    c o allen says:

    in the future may i suggest that you think through carefully how your comments might upset some of your fellow co.workers…for you to suggest that all part.timers lose their benefits is not only selfish(because u r a full.timer) but down right absurd…they are several legitimate factors why some of us chooses to remain part.time with this great company…i wil use my situation as a perfect example.I’ve been with the company for over 12 years as a full.timer and it wasn’t until 2 months ago a went into a part.time position so i can spend a little more time at home helping out around the house and helping out my wife with our beautiful baby girl because sometimes caring for a 15 month old baby can be very tiresome…now,more than ever i need my insurance to cover my family…another situation could be that someone might be enrolled in school trying to obtain a degree that will help to ensure a rewarding future/life for that empl and their family…another situation might be that someone has to be at home to care for a parent or a close relative and can only work a couple of hours a day…i could go on and on with examples why i think your suggestion about eliminating part.timers benefits are preposteruos but i’ll stop here because am running out of typing space…the bottom line is that we all need health coverage no matter if you are a full.timer or a part.timer because we all work under the same conditions and believe it or not,throughout my years at this wonderful company i’ve met many part.timers who take more pride in their job than some full.timers and some of us even up end doing more work than full.timers…ALLEN O…

    Dennis Thatcher says:

    What about the pilots? Personally I am proud to do my part. As some of the highest paid in their industry are the pilots intending to carrying their share of this burden? Correct me if I am wrong but doesn’t their association guarantee them a certain number of paid hours regardless if they actually fly? A small salary reduction for the some of the highest paid employees could go far too reducing costs!

    jack gumm says:

    I think pay cuts are just the beginning of the end for fedex or any one else.I worked for 3 companies from 1960-2002 All three walked out after giving concessions.Since 1980 of the top 100 freight companies their are only 4 of them left.A lot of them took pay cuts and esop programs and in the end closed the doors.
    I left 3 companies who wanted concessions and never looked back. All 3 of them went out of business.This has been going on with huge companies for quite some time.
    From my expertise I am certain that fedex will be asking all employees for concessions in one form or another. I hope i am wrong.

    WENDEE HUNTER says:

    I just wanted to share with you my thoughts on Fred’s Smith message yesterday. I woke up this morning thanking God that I work for such an awesome company where our Chairman, Fred Smith, lives the philosophy PSP. My family and I are so blessed that I work for FedEx. I believe in what Mr. Smith plan is to kept all the employees working during this economic downturn and I support his decision to do pay cuts across the board.
    I am also, thankful to be able to have health benefits for my family still which many companies are not able to provide.

    I just want to say this makes me proud to work for FedEx and I am going to work hard to get more business for our FedEx family!

    maupertuis says:

    world class instrument of trade about to be tested, again!

    Mohamed Hassan says:

    Prevent is better than the cure
    To all my FedEx colleagues all over the world, every body should start working on how to reduce costs.No one should think that this is an upper management concern and let them deal with it. I say: It’s every body’s responsibility and concern to start saving even 1$ and it will make a big difference. We owe this to FedEx. I will start with myself and make a plan to reduce cost in my station.

    Michael Jacobs says:

    Dear Mr. Smith,

    I’m not an employee, but a customer. I appreciate how hard it will be for a lot of your employees to absorb any pay cut, but I think it will be easier than the usual death watch that paralyzes and traumatizes companies that favor laying off a substantial part of the workforce.

    Thanks for taking some moral leadership on the salary cuts and pushing greater sacrifice for those who have greater salaries. I hope that your fellow CEO’s will follow your lead.

    I wish that as part of the bailout, the government was incentivizing rapid development and deployment of 50 mpg delivery vans. Or and electric quick charging system to support a fleet of electric vans.

    Perhaps, next year…

    Best of luck,

    I almost always have a great exeprience with your office centers and when I don’t the employees make it right. I hope you can all get back to full salary soon.

    Best,
    Michael Jacobs

    Memphis Best says:

    Mr. Smith, you stated that you will reduce your salary 20%. According to Forbes . com, your salary is 1,280,000 per year, this means you will have a reduction of 256,000 per year. However, your Bonus is 3,340,000 and ‘others’ is 4,050,000. Your total compensation is 8,670,000. Just to clarify, will you reduce your entire compensation 20% to 1,734,000 less or just 256,000?

    LJ says:

    I disagree 100% with this reduction for many reasons but I will outline just one. In June of this year, FedEx decided to change the name Kinkos to Office and will spend $891 Mil.

    22yearemployee says:

    I am with you my brother – The need to reduce the management head count – That will save a lot more money

    cm says:

    how bout turning off the lights in unused buildings during non operation, or at least install motion sensor lighting conserving energy and saving in UTILIY BILLS, thats big $$$$ savings.

    jim stern says:

    And to that idea. How about being less old school management, and encourage the migration of those support IT positions to telecommuniting. This alone can save FedEx tens of millions per year by allowing the FedEx to close buildings and space leasing.

    RS says:

    Its called a write down.

    The 891M is not out of pocket.

    Mark Tonkovich says:

    As a member of management and an 11 year employee of FedEx, I will admit I was initially disappointed when I heard this announcement. I am thankful for every opportunity which FedEx has provided me. FedEx has trusted me letting me grow and become a leader I would be proud to work for. I must now return that trust

    Mark Tonkovich says:

    Thank you Fred Smith, every one of us is tasked with making decisions like these on a smaller scale in our homes to ensure our families needs are met. Your leadership and courage to make these tough decisions for our FedEx family shows why you and FedEx are admired around the world. I support and salute you!

    Cathy Sachse says:

    Oh yee of little faith. I couldn’t agree with you less. This is only going to make our company stronger. As a 25 year employee my money is on Mr. Smith.

    Bob says:

    I am going to stay positive, and do everything that I can to help reduce costs at FedEx. If we all work as a team we can do it. I just turned off a light in my office, will not print any documents unless necessary. I do this at home to save money and I will do this at work as well.

    Kim Spight says:

    I would like to say how proud I am to work for a company that truly put the employees first. I stared with FedEx after college, have never worked anywhere else, have been here 12 years and have enjoyed every day of it!! When these cuts were announced last week, I talked to my mother who really put it into perspective. She asked me if I still had a job, I said yes. She asked me if I still had FedEx health benefits, and I said yes. She then said I should be happy and grateful. And to be honest I am very grateful. We can all replace the 5%. At least none of us had to go home and tell our families we had to replace 100%.

    Nicholas P says:

    Great companies take extraordinary decisions. I think the decision made by FedEx to slash salary and benefits was extraordinary. A smart business move in oreder to preserve FedEx’s people-centric image in the future. However, There is a reason why other great companies sometimes trim workforces, downturn or not. These are opportunities to reduce some overstaffing and also to rid the company of under-performers. It positions the company for a better future more than across-the-board pay cuts will. I’m not saying we should send thousands home, but we should consider trimming staff in a smart way that will help the company perform better in the future.

    David Thomas says:

    We employees should be a little more focused on the fact that we’re all still employed and we have a leader/s that are taking steps to continue this status. Fred Smith’s cut in salary should be appreciated but should not be an employee’s focus of how much or whether it should have been more since his guidance and decisions are the main reason we are an example that other companies continue to watch closely and in many cases attempt to immitate.

    Eric says:

    I do not wish to have my income compromised. Nobody does. While I agree with the changes to the degree that we will save (some) jobs, there is ample waste that we all observe daily that could save FedEx (and all OpCos) countless dollars. From printing additional paperwork to making a long distance call rather than sending an email. Or even something as miniscule as turning off a bathroom light.

    We must have already reviewed all employees dedication to the purple promise and their diligent work ethics, since there are plenty of current FedEx employees still employed who do not deserve their job. I personally have witnessed employees waste time and resources, others take advantage of FMLA, and others do virtually nothing and still collect a paycheck.
    The fact that I have lost pay in order to allow these people to keep a job makes me sick. I work hard to get praise from my customers, for a good review, a pay raise, and to support my family. Those that do not, do not deserve the job. They are not helping to ameliorate the problem, they are part of it.

    We continually are pushed to more with less. This conundrum is no exception. Cutting our pay is not the solution. Streamlining, reviewing processes, evaluating (and eliminating) personnel, cutting routes, eliminating advertising and marketing costs are only a few of the ways to save money. This is only the beginning. No doubt, the quality people inside FedEx will rise and help us all through these tough times…even if the slackers are riding our coat tails.

    C. Hendrix says:

    I am glad to say that I am still employeed, The job market is awful right now and I would hate to be one of the many people without a job this Christmas. I just wish we had more warning, a simple heads up before Christmas and before a few weeks out. We are forced to make life altering descions everyday as individuals, so it’s only natural that the company has to do the same. It is just that our descions are made alot of times based of our fiancial situations at the moment. Our commitments to our bill collectors don’t change because our payrate does. Thank you for not cutting jobs, but next time around just give us a bigger warning about cuts. It may make the difference in life altering descions.

    Christy says:

    DING DING DING! The question on the minds of so many…

    michael raleigh says:

    As a 24 year employee,Ive seen alot come and go,We all must do our part to save our company,I never have understood,why we pay poeple to clean our buldings and do our landscape,It goes to the saying your mother does’nt work here,clean up after youself,we should pay employes by the hour to do this,I myself, dont mind taking out the garbage or cutting the grass,My question is,How much money, company wide, do we spend a month, paying to have people clean up after us,Lets save our company,and clean up after our selves,any volunteers!!!!!!!!!!

    lovemyjob says:

    I agree…my questions are these: If we are a global shipping company, why do we pay the U.S. Postal Service thousands upon thousands of dollars to ship sales magazines, cd’s, operations magazines and so forth to our homes? Why are such items not sent directly to hub operations, corporate offices, freight terminals etc, and distributed? Or..possibly not printed at all…sales has access to laptops, desktops, etc…this should 100% handsdown, be sent via electronic distribution. We seem to have a major issue with Marketing waste. I’m not sure if everyone caught a peak of the gowing green literature that surfaced…we just spent an unknown amout of money…publishing printed material about conservation??? Case in point: There was a tri fold, glossy, thick brochure…with no cost spared..printed about Solar-power, Fuel Economy, Energy Efficiency and Energy Watch by FedEx Freight and National that quotes the following: “We’re comiitted to preserving our environmental resources by….”…not sure what kind of image that presents but it seems a little ironic…I fully support the leadership of this company and the direction they are headed…however, I feel there are some fair steps that need to be taken from a ‘waste’ perspective in a trade off. I will fully support the pay reduction…if we take a look at the millions of dollars that need to be spent in a different direction. We pride ourselves in the technology we offer…yet continue to print…print…print our way to nowhere.

    Karen says:

    Uniform Allowance…
    I would like to know how much money is spent on uniforms for employees without customer contact. How much money would the company save by not giving employees that work at the ramp$150 per year for uniforms. They do not see customers, maybe just supply t-shirts and sweatshirts after an employee has been with the company 6 months. And due the the high turnover rate have employees continue to turn in their uniforms to be reused.

    amy mcneill says:

    Thank you Mr. Smith. I am proud to take the 5% paycut. I’ve only been here 10 years and the main thing I’ve learned is that we (FedEx) is a FAMILY!!! I would rather have paycuts rather than a few of our “family” members losing their jobs. If this decision had come from anyone other than Mr. Smith himself, I’d be worried. I trust Mr. Smith and know that he is looking out for us and our families. To all of you whining about your 5% loss – you’d better thank God you still have a job and thank God we have someone like Mr. Smith watching out for YOUR job. Merry Christmas and Happy Holidays to all of my FedEx family!

    amy says:

    Let me guess – you are very young and haven’t worked at FedEx very long. Your saying that you would only be put in the position of making sure FedEx succeeds if you get something out of it? Your JOB is what you get out of it. You should realize that if FedEx succeeds – you succeed. Read the paper or turn on any news channel and see what happens when companies are as greedy as you suggest. Your lucky to be working at FedEx and having the executive management looking out after you and your family.

    MarbleSue says:

    In this terrible economy in which we are all living, I am just thankful to have my job here at FedEx Ground. I have been an employee for 7 yrs, and don’t plan on leaving willingly. Glad to hear that ‘Uppers’ are taking pay cuts. It is the right thing to do. Whether we agree with the amount of not, we cannont change it. Many people have said they need to get rid of the football and the golf and NASCAR, too. Maybe they should. As a huge fan of Denny Hamlin, it pains me to say it, but maybe that SHOULD be a consideration as well. We should all be thankful that at this time, we still have our jobs and haven’t been given pink slips as so many have in recent months.

    I hope you all have a Merry Christmas!

    LJ McCaleb says:

    I am very happy to be employed at FedEx. My manager Jennifer DeLater is wonderfully brilliant. She helps make my tenure a satisfying and humble experience. She is an asset. Pay cuts are necessary to maintain our existence and hopefully won’t last long. The FedEx family will survive. We rock!

    Ruben Marin says:

    I agree with the majority of what has been said. I am not a manager but I don’t think our ops managers pay should be cut. They have one of the most difficult jobs to do in this company. They are with us on the front lines and constantly juggling and trying to “make do”. Often short handed and having to go out there and make deliveries too.

    We should focus our attention to service and the indicies that make us profitable and protect our brand more so now than ever. We should also consider cutting out vendors like lawn service, pest control and cleaning. We can do that ourselves. Heck our lawn is so small you can do it with a weed wacker and a push mower. Why pay a stranger when many of us need the hours?

    One other area is “cash only customers”. We should take a more aggressive approach to fixing that! Most often a credit card expired or a digit on the account is wrong. Let’s find a way to get that done and get that revenue in here. All too often we have shippers putting packages into our system for free!

    We also have to be more dilligent about inspecting package weights. I found many packages, even last night, from shippers with bad weights. They had a fifteen peice shipment with 11lbs on each, when it was actually about 80lbs each. We have to keep our eyes open and make sure we get that fixed before it leaves the station. Let’s control what we can and things will work out. Stop the mentallity that someone else will get it. Do it right the first time!

    Kimberely Howell Jones says:

    Thanks for Walking the Walk.
    During these tough times, it was good to know that our Leadership team led by example. The pay cut was difficult, but I knew I wasn’t in it alone. I was more concerned over the possibility of losing 100% of my income, a mere 5% pay cut was welcomed.
    The leadership team made a hard decision, which was the right thing to do, to save the jobs of others. I am grateful to still be with the company, and see the company’s commitment to its employees continue. Pay increases have returned, and bonus will soon follow.
    The leadership team kept their word, and should be commended for it.

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