FedEx Shakes Up Networks in Long Race to Catch UPS: Supply Lines

FedEx is embarking on the courier company’s most sweeping restructuring in its 50-year history.

The overhaul aims to merge its contractor-driven and lower-cost Ground unit with the Express division, which employs only staff drivers. It sets the stage for what some analysts see as possibly doing away with staff drivers entirely — in sharp contrast with rival UPS, which operates with well-paid, unionized staff drivers.

Investors are cheering the potential cost savings, but FedEx’s plans aren’t without big execution challenges and the prospect of heavy job losses, as Bloomberg’s Thomas Black chronicles here.

CEO Raj Subramaniam, who took over for founder Fred ...