In arguably one of the most important moves in its history, FedEx Corp. said Wednesday it will combine most of its operating units into one business known as Federal Express Corp.
The transition will bring FedEx’s air, ground parcel and other operating business under one umbrella, effective June 1, 2024. FedEx Freight, the company’s LTL operation, will continue to operate as a stand-alone entity within the new corporation.
FedEx Corp.’s CEO Raj Subramaniam will run the new enterprise, the company said.
Effective April 16, John Smith, current FedEx Ground CEO, will become president and CEO of all FedEx Express and FedEx Ground operations in the U.S. and Canada. Smith will also run surface operations across the FedEx Express, FedEx Freight and FedEx Ground units.
Richard Smith, head of FedEx Express and son of founder Frederick W. Smith, will serve as president and CEO of air and international of the Express unit.
Since its founding in the early 1970s, FedEx has operated in a siloed manner with each business unit operating on its own. That model faded in relevance as a new regime took over and the elder Smith stepped away from the CEO job in 2022 to become executive chairman.