Struggling with rising freight volume and continuing losses, FedEx will merge its FedEx Freight and FedEx National LTL networks, closing as many as 100 facilities.
The company plans to complete the merger by Jan. 30, 2011, laying off approximately 1,700 workers, terminating leases and selling off some assets.
The combination will provide customers a choice of priority or economy less-than-truckload freight services across all lengths of haul from one integrated company.
The restructuring will cost FedEx $150 million to $200 million, the company said.
By The Numbers: Cass Freight Index.
"This change, along with the company's ongoing yield management initiatives, is expected to substantially improve the profitability of FedEx Freight," FedEx said.
The transportation giant has operated two separate less-than-truckload networks since it acquired Watkins Motor Lines, now FedEx National LTL, in 2006.
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