Employment Law

FedEx laying off staff to ‘streamline and realign functions’

A photo of cardboard boxes. (Photo: Kadarius Seegars / Unsplash)

What’s happening at FedEx?

FedEx is scaling back its staffing levels after posting stronger-than-expected quarterly earnings.

“We made the difficult decision to reduce a small percentage of positions as we streamline and realign functions,” the delivery giant said in a statement to FreightWaves.

“Decisions of this nature are never made lightly and are the result of much thought and consideration for the needs of our business. We are actively working with those affected by these changes to ensure they have the support they need during this transition.”

CEO Raj Subramaniam told staff in a recent memo that the company’s transformation efforts will “optimize our business and deliver profitable growth.”

FedEx merging Ground and Express units, contractors to become staff
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Amazon trimming ‘Buy with Prime’ unit amid sweeping layoffs

Impact on Canadian staff

It remains unclear if any Canadian employees at FedEx are affected by the latest round of job cuts.

According to the company’s LinkedIn page, it has more than 4,000 workers in the country.

Termination agreements for FedEx Canada employees

In Canada, non-unionized employees at FedEx are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

Severance pay for provincially regulated employees
Rights to severance during mass layoffs
Severance entitlements in a recession

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Major layoffs continue

The job cuts at FedEx come amid a flurry of layoffs in 2024.

Big names, including Telus, Li-Cycle, Canada Goose, Dell, Unilever, IBM, TC Energy, Electronic Arts, Rivian, Sony, Vice Media, BuzzFeed, Nike, and Cisco, have pulled out the axe as they continue to navigate challenging economic conditions.

Shell to lay off 20% of deals division, part of restructuring
Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

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