Rajesh Subramani on business transformation
From What's Driving Transformation at FedEx? CEO Raj Subramaniam fills us in at the Evolve Global Summit · · CNBCEvents
“This year, FedEx announced a bold plan to transform the company by integrating its three core businesses—air delivery, ground delivery, and trucking—into a single entity, which is a significant strategic shift.”
On , Rajesh Subramani, President, CEO & Director at FedEx Corporation, spoke about business transformation during What's Driving Transformation at FedEx? CEO Raj Subramaniam fills us in at the Evolve Global Summit on CNBCEvents.
About Rajesh Subramani
At the CNBC Evolve Global Summit in November 2023, Subramaniam discussed the company's ongoing transformation, which he described as integrating its air, ground, and trucking businesses into a single entity. He attributed the need for this change to the growth of e-commerce, noting that the shift from business to residential deliveries required operational and technological adaptation. Subramaniam stated that despite a decline in volumes, FedEx's operating profit increased for the first time in the company's history, which he credited to the team's focus on efficiency and the strengthening of the company's "people, service, profit" culture. In June 2022, at FedEx's first investor day in a decade, Subramaniam outlined a three-step plan to achieve double-digit operating margins, balanced revenue growth, and improved asset intensity, targeting a total shareholder return of 8% to 22%. He cited projections of 14% to 19% EPS growth and a 53% dividend increase as signals of confidence in the company's financial position. Subramaniam also addressed labor pressures, stating that the company had addressed routing inefficiencies and wage rate challenges, and that the labor market had become "strong but stable."