retail news in context, analysis with attitude

Fox Business reports that "FedEx Freight, the company’s less-than-truckload arm unit, says an unspecified number of its employees will be furloughed in early December to match lower-than-expected demand.

"The furloughs will last around three months. During this time, workers will still receive health benefits and may file for unemployment benefits with the state."

The story notes that "the unit employs around 45,000 people, but it remains unclear how many of them are drivers.  The furlough comes as the LTL segment has seen volumes taper off in recent weeks amid high inflation and fears of a recession on the horizon."

However, "FedEx Freight has performed the best among the company’s other two, larger business units: FedEx Express and FedEx Ground, which have also been hurt by higher costs and slower-than-expected demand."

KC's View:

This may be an anomaly, and it may mean nothing, but it remains striking that we have a delivery company laying off people right before the holidays.  Yikes.