FedEx Provides Color on Cost Initiatives; Express and Ground Networks to Consolidate

During its investor event, FedEx provided incremental color surrounding its ongoing Drive and eventual Network 2.0 programs, which target significant structural cost savings. To bolster its Drive efforts, the firm announced it will consolidate Express and Ground—which are currently run separately—into a fully integrated air/ground network by June 2024. The less-than-truckload segment (Freight) will remain independent. This was new information for us (and probably for investors), but as we understand it, management was already anticipating the move as part of its network transformation.