FedEx Is Reassuring Holiday Shippers And Retailers It Can Deliver For Peak Season Even After Major Cost Cuts

FedEx is confident it can meet the demand of peak holiday season despite recent cuts to worker hours, Express delivery flights and facilities in a broad based cost-cutting effort triggered by “global volume softness” the company cited during its 

FedEx is confident it can meet the demand of peak holiday season despite recent cuts to worker hours, Express delivery flights and facilities in a broad based cost-cutting effort triggered by “global volume softness” the company cited during its in September.

“We expect volumes to be moderate from a year over year perspective. But we are ready for service and we are ready for our customers,” FedEx chief customer officer Brie Carere told CNBC in an exclusive interview. The logistics company released its holiday shipping outlook on Thursday morning.

FedEx also faced a pay dispute with a faction of the 6,000 contractors that operate its residential e-commerce focused ground network. In August, the Memphis-based carrier, Spencer Patton, who threatened to shut down his business and deliver after Black Friday if he was not given more compensation.

Carere says the company “terminated” its agreement with Patton. A spokesperson for Patton tells CNBC they “took away” the routes he operated in 10 states.

“Since then [ground] service has not suffered at all,” Carare said.

“The network is ready for our customers to support the sales they have now, to support the sales that they’re going to have on Black Friday. We’re also ready for the sales that they’re going to have and we believe will continue right through the month of December,” she added.