Despite posting a small profit this quarter, package delivery company FedEx Corp. announced it would impose further cost-cutting measures expected to save the firm hundreds of millions of dollars. As a result of worsening economic conditions, FedEx is cutting senior executive pay, temporarily freezing some 401(k) contributions, and enacting a 5% decrease in wages for lower personnel. The initiatives come even after the firm already implemented layoffs, hour reductions, hiring freezes, and store closings this year.
See "FedEx Posts Higher Profit but Plans Salary Cuts", The New York Times, December 17, 2008