FedEx to offer buyouts with up to 2 years' pay

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FedEx says that it will be offering some employees up to two years' pay to leave the company starting next year.

The voluntary program is part of an effort by the world's second-biggest package delivery company to cut annual costs by $1.7 billion within three years. The restructuring is a response to a shift by customers away from premium package-delivery services and toward slower, less expensive modes as the global economy struggles to grow.

Employees who volunteer for the program will receive four weeks of pay for every year of service, capped at two full years of base pay. FedEx has said previously that the buyouts should reduce "fixed head count by several thousand people."

Those eligible will be notified in February, and have until April to apply. They'll find out in May if they are accepted. The first wave of employees will leave on May 31, the last day of FedEx's fiscal year. The next wave will leave six months later and the final tranche will depart on May 31, 2014.

FedEx's larger rival United Parcel Service has also said it is reducing costs to make up for slower global growth.

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