FedEx Aims to Cut $4 Billion by Merging Delivery Networks (2)

FedEx Corp. is seeking to cut $4 billion in costs by combining its two main delivery networks, in an ambitious plan by new Chief Executive Officer Raj Subramaniam to increase profit margins.

The courier has for decades operated an express package business separately from its ground unit, which FedEx acquired in 1998 and depends on third-party contractors to make the last-mile delivery of parcels. As of June 2024, it will be “a single company operating a unified, fully integrated air-ground network under the respected FedEx brand,” the company said Wednesday in a statement.

Raj Subramaniam

Photographer: Michael Wade/Icon Sportswire/Getty Images

“FedEx is at a pivotal ...