Montreal logistics jobs saw a sizable increase in recent years, but now the rest of the industry faces massive layoffs. FedEx announced layoffs for officers, directors, and SameDay City workers. Amazon has reported an unprofitable 2022 and is looking to adjust its focuses and practices, while UPS has begun preparations for a predicted drop in global delivery volumes.
Montreal Logistic Jobs See Sizable Increase
Montreal’s transport and logistics sector experienced a 24% increase in employment. The sector grew from 43,700 to 54,100 from 2012 to 2021, while the number of companies decreased from 6,297 to 6,089. Despite this, the sector remains significant and has seen a growth in added value from $4 billion to $8.7 billion in Greater Montreal.
Source: Inside Logistics
FedEx Announced Layoffs
FedEx will reduce over 10% of its officer and director positions, as well as consolidate some teams and functions, due to declining demand, according to CEO Raj Subramaniam. The move aims at making FedEx a more efficient and agile organization and better align the size of its network with customer demand.
Source: Supply Chain Drive
Global Delivery Volumes Predicted To Drop
UPS expects its annual revenue to decline for the first time since 2009, due to a slowdown in global delivery volumes. The company expects a revenue range of $97 billion to $99.4 billion in 2023, down from $100.3 billion in the previous year. This follows a surprise decline in Q4 revenue due to decreased and delayed delivery during the holidays. The company’s outlook also takes into account the expectation for the US to face a mild recession in H1 2023 before recovery in H2.
Source: Wall Street Journal
Amazon Reports Unprofitable Year
Amazon is focusing on improving productivity after reporting a $2.7 billion loss in 2022. CEO Andrew Jassy stated that the company needs to increase efficiency between its fulfillment and transportation networks. He acknowledged that optimizing all the links and flows within its facilities takes time but assured that the company is working hard on it.
Source: Supply Chain Drive
FedEx Ends Same-Day City Service
FedEx announced that it will discontinue its Same-Day City Service, which provides same-day delivery in large metropolitan areas by March 31. Same-Day City was a fast delivery option for businesses in various sectors like healthcare, automotive, and others, offering door-to-door delivery within hours. The impacted workers will receive severance packages. Same-day delivery will still be available through FedEx SameDay US and FedEx SameDay Freight.
Source: Supply Chain Drive
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