FedEx to Combine Delivery Units as Part of $4 Billion Push to Cut Costs

FedEx Corp said on Wednesday it will consolidate its separate delivery companies into a single entity, in a move to slash costs and better compete with United Parcel Service and Amazon.

The decision to integrate FedEx Ground, its outsourced package delivery arm, with the FedEx Express overnight air delivery business was announced almost a year after activist investor D.E. Shaw pushed for change and won two additional board seats.

The deflating e-commerce delivery bubble and specter of potential recession over the past year has intensified pressure on Chief Executive Officer Raj Subramaniam to streamline operations.

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