What’s the idea with FedEx? In these tough times when it is easy to cut headcount or RIF (reduction in force) workers, it’s nice to see companies like FedEx taking a smarter approach. They’ve cut the CEO’s salary 20%, top-tier officers 7-10%, white collars below the vp level 5%, and no cuts for hourly employees. (Per comment below.) All 401K contributions have been suspended and though it’s not a happy time everyone in the company feels the punch. This approach brings the entire company together, encouraging every employee to work harder. No part of the company is left to sulk in the corner. No spiteful anger out on the street — because fewer people are let go.
A few years ago, I’m told, FedEx took this same approach when things were badand they turned their business around nicely. This is leadership. This is shared responsibility. This is the way to enlist an army to turn things around. Bravo FedEx.