FedEx Eliminates 401(k) Match for Employees

FedEx today joined Motorola, Kodak, and General Motors in suspending its 401(k) match for employees. The employer contributions will stop flowing into employee retirement accounts on February 1 for a minimum of one year.

“We hope to reinstate the company match in 2010, depending upon business and global economic conditions,” writes FedEx CEO Frederick Smith on his company blog.

Other cuts announced today were a 5 percent salary decrease for employees, a 7.5 to 10 percent pay cut for senior FedEx executives, and a 20 percent salary reduction for Smith.

“Our financial performance is increasingly being challenged by some of the worst economic conditions in the company’s 35-year operating history,” says Smith in a statement. “With the decline in shipping trends during our second quarter and the expectation that economic conditions will remain very difficult through calendar 2009, we are taking additional actions necessary to help offset weak demand, protect our business, and minimize the loss of jobs.”

FedEx today reported earnings of $1.58 per diluted share for the second quarter, which ended November 30, up from $1.54 a year ago.

Reader Comments Read all comments (8)

Add Your Thoughts

Comment Name State Select One AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY International Email

Please enter the two words below into the text field underneath the image.

Incorrect please try again

Enter the words above: Enter the numbers you hear:

Your comment will be posted immediately, unless it is spam or contains profanity. For more information, please see our Comments FAQ.