FedEx to consolidate Express, Ground and Services operating companies

FedEx will consolidate FedEx Express, FedEx Ground, and FedEx Services operating companies under the Federal Express Corporation by June 2024, leaving FedEx Freight as a standalone LTL service.

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

Details emerged April 5 during the fleet’s Drive Investor Event.

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

The new structure aligns with the company’s “Drive” initiative, which looks to improve efficiency in Canada and the U.S., the company says.

With the change, John A. Smith will become president and CEO of U.S. and Canada ground operations at FedEx effective April 16, taking the lead of surface operations across FedEx Express, FedEx Ground, and FedEx Freight. Richard W. Smith will serve as president and CEO of airline and international at FedEx Express, overseeing all other regions and FedEx Logistics.

The Drive initiative touches 14 “domains” across customer, surface network, air network and international, and general and administrative areas, and has a goal of generating $4 billion in permanent cost savings in fiscal 2025. Of that, $1.2 billion will come from the surface network.