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**FedEx Spins Off FedEx Freight in Major Restructuring Effort**
In June 2023, FedEx Corporation (NYSE: FDX) spun off an 80.1% stake of its FedEx Freight division (NYSE: FDXF), marking a significant shift in its operations as the company focuses more on its core parcel delivery business. Following the spinoff, shares of FedEx Freight initially surged but have since experienced a pullback, while FedEx’s stock has remained stable.
Investors received one share of FedEx Freight for every two shares of FedEx they held at the time of the spinoff. FedEx still holds a 19.9% stake in FedEx Freight and plans to divest this remaining stake through various strategies. FedEx’s new strategic initiative, Network 2.0, is expected to deliver around $2 billion in structural cost savings, although challenges remain from increasing competition, particularly from Amazon, which poses a substantial threat to FedEx’s market share.
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