FedEx's restructuring announcement was ‘contradictory’: Analyst
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FedEx's restructuring announcement was ‘contradictory’: Analyst
FedEx's restructuring announcement was ‘contradictory’: Analyst
FedEx (FDX) announced its restructuring plan at its DRIVE investor event Wednesday. The company saying it will consolidate its Express, Ground, and other units by June 2024 as part of its $4 billion cost-cutting plan. Anthony DeRuijter, Third Bridge Senior Analyst joined Yahoo Finance to share his thoughts on the event. DeRuijter told Yahoo Finance that he left the event with more questions, especially when it comes to cuts to FedEx’s air division, saying “how are you going to convince the pilots who are pushing back? How are you going to take capacity out of the fleet without putting air slots and landing rights at risk?” DeRuijter also shared that some of the plans FedEx announced seemed antithetical to the company’s actions. “Fedex was very contradictory with their language. Like they talked about Sunday deliveries and how that's a key, I guess, comparative advantage for them there, but at the same time, they announced that they wanted to pull that back before,” he said. Watch the full interview with Seana Smith here. Key video moments: 00:00:00 FedEx's stock movement 00:00:20 DeRuijter's questions for FedEx 00:01:58 "There's a cultural wall there" 00:02:20 On targeting SMB 00:02:40 On contradictory language
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FedEx's restructuring announcement was ‘contradictory’: Analyst
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FedEx (FDX) announced its restructuring plan at its DRIVE investor event Wednesday. The company saying it will consolidate its Express, Ground, and other units by June 2024 as part of its $4 billion cost-cutting plan. Anthony DeRuijter, Third Bridge Senior Analyst joined Yahoo Finance to share his thoughts on the event.
DeRuijter told Yahoo Finance that he left the event with more questions, especially when it comes to cuts to FedEx’s air division, saying “how are you going to convince the pilots who are pushing back? How are you going to take capacity out of the fleet without putting air slots and landing rights at risk?”
DeRuijter also shared that some of the plans FedEx announced seemed antithetical to the company’s actions. “Fedex was very contradictory with their language. Like they talked about Sunday deliveries and how that's a key, I guess, comparative advantage for them there, but at the same time, they announced that they wanted to pull that back before,” he said.
Watch the full interview with Seana Smith here.
Key video moments:
00:00:00 FedEx's stock movement
00:00:20 DeRuijter's questions for FedEx
00:01:58 "There's a cultural wall there"
00:02:20 On targeting SMB
00:02:40 On contradictory language
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