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: FedEx to cut executive team by more than 10%

FedEx Corp. said Wednesday it will cut its executive team by more than 10% and “consolidate” some teams and jobs as it aims to become a “more efficient, agile organization.”

Shares of FedEx

traded more than 4% higher after the news.

Employees who are affected were being notified on Wednesday, the retailer said.

“Saying goodbye to longtime colleagues and friends whom we value and respect is extraordinarily difficult,” Chief Executive Raj Subramaniam said in a letter to employees. “Unfortunately, this was a necessary action to become a more efficient, agile organization.”

FedEx can be “stronger by better aligning the size of our network with customer demand,” he said. “While we have already taken many actions to that end, it was necessary to also look closely at the size of our leadership team and functions that could be consolidated.”

Subramaniam became FedEx CEO in June, after founder Fred Smith stepped down as CEO and became executive chairman. Subramaniam had been FedEx’s chief operating officer.

The company said in December it planned to cut an extra $1 billion in costs beyond what it outlined in September, amid what management called a “weaker demand environment.”

FedEx stock has lost 21% in the past 12 months, compared with losses of 11% for the S&P 500 index

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