FedEx mulls relocating jobs and APAC HQs from HK to SG

FedEx is relocating some of its jobs and its regional headquarters from Hong Kong to Singapore, while a strong leadership team will stay in Hong Kong.

In a conversation with MARKETING-INTERACTIVE, FedEx’s spokesperson said the shift would involve moving less than 15% of positions originally based in Asia Pacific, the Middle East and Africa to Singapore.

This comes as FedEx is constantly exploring opportunities to better serve its customers and enhance its network in the region, said the spokesperson. “We will consolidate some Asia Pacific, Middle East and Africa (AMEA) headquarter functions in Singapore to connect all of our operations in this region with greater speed and agility,” the spokesperson said.

With over three decades of operations in the region, FedEx has operations in over 100 countries and territories with more than 35,000 employees, of which Hong Kong has 1,400 staff currently.

Meanwhile, a significant presence and strong leadership team will continue to serve customers in Hong Kong, providing vital support for  FedEx China, North and South Pacific and Middle East, India Subcontinent, and Africa (MEISA) operations, said the spokesperson.

According to the company’s third quarter results, FedEx has recorded US$22.2bn revenue for fiscal 2023, compared with US$23.6bn in fiscal year 2022, while its net income has decreased from US$1.11bn to US$771m.

The company said that its third quarter results were negatively affected by continued demand weakness, particularly at FedEx Express. In addition, operating income was negatively affected by the effects of global inflation, partially offset by U.S. domestic yield improvement and cost-reduction actions.

FedEx Ground operating results improved, primarily due to an 11% increase in revenue per package and cost-reduction actions. These factors were partially offset by lower package volume, higher infrastructure costs and increased other operating expenses.

On the other hand, FedEx Express operating results declined due to lower global volumes, partially offset by a 3% increase in revenue per package. The company said FedEx Express continues to implement volume-related and structural cost-reduction actions to mitigate the negative effect of ongoing demand weakness.

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