Feb 19 FedEx Corp said it will incur a
cash charge of $550 million to $650 million over the next two
quarters as several of its U.S. employees accept a voluntary
The world's second-largest package delivery company had
offered a voluntary buyout program for its U.S.-based employees
as part of its plan to save costs at its underperforming express
air freight and services divisions, and improve profit by $1.7
billion over the next four years.
The company had said it expects thousand of U.S. employees
to accept the buyout program that expires in May.
Though the company provided an estimate of costs to be
incurred from the buyout, the actual costs will depend on
employee acceptance rates, FedEx said in a regulatory filing on
It did not reveal how many employees accepted its offer.
Costs of the voluntary buyout program were not included in
the third-quarter and full-year earnings forecast, FedEx said.
FedEx said a limited number of officers and managing
directors have also accepted voluntary buyouts.
All eligible and accepting employees will vacate their
positions by the end of fiscal year 2014, the company said.