FEDEX CORP 8-K

What Happened

• FedEx Corporation disclosed a transformation program for its FedEx Express France unit (FedEx France) in a press release dated January 23, 2026, that may reduce up to 500 operational positions and change locations/schedules for up to 800 team members. The program is expected to be executed over approximately 18 months and is subject to local consultation processes.
• The company also announced on January 27, 2026, the appointment of Scott L. Ray as Chief Operating Officer, United States and Canada — elect, effective February 1, 2026, and as COO, U.S. & Canada, effective June 1, 2026. John A. Smith will become president and CEO of FedEx Freight following its planned spin-off, expected to be completed June 1, 2026; he will remain in his current role through May 31, 2026.

Key Details

• Estimated pre-tax charges related to the France transformation: $175 million to $275 million, substantially all cash, to be incurred through fiscal 2028 and classified as business optimization costs, net of payments.
• Potential headcount impact: up to 500 operational positions reduced; working locations/schedules may change for up to 800 operational team members.
• Timeline and process: execution over ~18 months and subject to local country consultation and regulatory processes; actual costs and timing may differ.
• Leadership change: Scott L. Ray named COO U.S. & Canada (Feb 1 elect, June 1 effective); John A. Smith will lead the spun-off FedEx Freight (spin-off expected June 1, 2026).

Why It Matters

• The France program could lead to significant one-time cash expenditures ($175–$275M) and reorganization-related workforce changes that may affect near-term operating results; these charges are reported as business optimization costs and are expected through fiscal 2028.
• The COO appointment and the planned FedEx Freight spin-off signal leadership transitions in the company’s U.S./Canada operations and the broader corporate structure; the spin-off and restructuring outcomes remain subject to required approvals and conditions as noted in the filing.
• Investors should note the forward-looking nature of the estimates and timelines—actual costs, savings and timing could change based on local consultations and other factors disclosed by FedEx.