FedEx plans to lay off 900 at freight unit

NEW YORK: FedEx's freight unit says it will lay off 900 employees, saying that sluggish demand has declined further so far this year.

FedEx Freight, a subsidiary of FedEx Corp., said the unit is not gaining market share fast enough to offset the steep declines in customer demand.

A company spokesman said the unit will cut jobs at about 130 facilities. FedEx did not specify what types of jobs will be affected.

The unit has about 35,000 employees, according to its Web site. In December, FedEx Corp. announced widespread pay cuts to stem job losses. It halted its contribution to employee's retirement plans for at least a year.

The company said the job cuts were necessary to account for the increasing deterioration in demand since December.

Some employees will be given the option to transfer to another position within the company. Others will be let go and could be recalled within 90 days. Health care benefits will be maintained for those employees for at least 30 days.

Severance packages are being offered. FedEx Freight said the less-than-truckload market in which it operates ``faces unprecedented economic challenges.''

``FedEx Freight is not immune from these conditions,'' the unit said in a statement. ``We are taking these steps to navigate through this incredibly challenging environment and remain strong and competitive.''