FedEx is making solid progress with Network 2.0, as the company has implemented Network 2.0 optimization in more than
50 locations in the U.S. In some of these markets, contracted service providers
will be handling the pickup and delivery of ground and express packages. In others, pickup and delivery will be
handled exclusively by employee couriers.
FedEx will also begin implementing Network 2.0 optimization in dozens of additional locations in the U.S. during calendar 2024. And as previously announced, all FedEx Ground operations and personnel in Canada will transition to Federal Express Canada starting in April 2024. This transition will be seamless to customers, who can expect the same outstanding service they receive today. The new streamlined structure will position the company to more efficiently address future growth opportunities in the Canadian market.
Each market is unique and will be optimized based on a number of factors, including volume fluctuations, customer
demand, facility footprints, and more. Both the employee courier and the contracted service provider models will
continue to play critical roles within the U.S. operations network and for the overall success of the company
strategy.
Certain statements herein may be considered forward-looking statements, such as statements regarding our
business strategy and planned consolidation of operating companies. Such statements are subject to risks and
uncertainties including, but not limited to, our ability to successfully implement our business strategy and
global transformation program and consolidate our operating companies into one organization and other factors
discussed in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with the Securities
and Exchange Commission.