FedEx is to consolidate its companies into a single organisation and operate "a unified, fully integrated air-ground network" by 2024.
The unified business will "bring distinct focus on the air network and international volume", the company said, adding it expects the merging of its businesses to save it around $4bn in 2025.
The move is aimed at "creating efficiencies that will enhance the company's ability to meet the evolving needs of customers and ultimately build a stronger, more profitable enterprise".
“Over the last 50 years, we built networks that have created a differentiated and unmatched portfolio of services,” said Raj Subramaniam, president and chief executive of FedEx Corporation.
“This organisational evolution reflects how we represent ourselves in the marketplace – focused on flexibility, efficiency, and intelligence. As one FedEx team, we are well positioned to execute on our mission to help customers compete and win with the world’s smartest logistics network", added Subramaniam, who is to lead the revamped FedEx.
The FedEx board at the same time approved an increase in the annual dividend rate on its common stock of 10%, or $0.44 per share, to $5.04 per share for fiscal 2024. It then declared a quarterly cash dividend of $1.26 per share of FedEx common stock, payable July 3 2023 to stockholders of record at the close of business on June 12.