FedEx plans to combine its FedEx Ground and FedEx Express delivery businesses into one entity.

 

FedEx plans to combine its FedEx Ground and FedEx Express delivery businesses into one entity.  The move comes as activist investor D.E. Shaw pushed for changes at the delivery company and won two additional board seats. FedEx said the restructure would cut costs and help the firm better compete with UPS and Amazon. The combined business will handle all deliveries starting June 2024. The reorganization is expected to cut $4B in permanent costs by the end of the company’s 2025 fiscal year. FedEx Freight will continue to provide freight transportation services as a separate entity. FedEx shares closed at $229.93 on Wednesday, up ~1.6% for the day; the company is up ~30% YTD.