FedEx to combine delivery units as part of a $4 billion cost-cutting push
FedEx said on Wednesday it will consolidate its separate delivery companies into a single entity, as the group slims its bloated infrastructure to compete better with United Parcel Service and Amazon .

The move to integrate FedEx Ground, its outsourced package delivery arm, with the FedEx Express overnight air delivery business was announced almost a year after activist investor D.E. Shaw pushed for change and won two additional board seats.

The deflating e-commerce delivery bubble and specter of potential recession over the past year has intensified pressure on Chief Executive Officer Raj Subramaniam to streamline operations.

"We believe now is the right time to reorganize how we work together," Subramaniam told a company meeting in New York City.

"We will be leaner, more agile and better positioned to execute on our mission to help customers compete and win with the world's smartest logistics network."

The combined delivery business is expected to handle all deliveries from June 2024 as part of the wider plan by the Memphis-based group's plan to cut $4 billion in permanent costs by the end of its 2025 financial year.