FedEx Corp.
FDX,
is suspending Sunday residential delivery in certain U.S. markets starting next month, a move that comes amid pleas from its independent contractors in recent months for more compensation and a moderation in package volumes.
The service cutback for FedEx Ground starts the week of Aug. 15 and is targeted for areas with smaller populations, a company memo to some contractors said Thursday. The decision reflects a “continuous focus on improving efficiency and reducing costs,” the company said.
A company spokesman declined to provide specific markets that would be affected. In places where Sunday deliveries are suspended, packages will be allocated to Saturday and Monday.
With the service change, Sunday deliveries would continue to reach nearly 80% of the U.S. population, according to the memo.
The service change is the latest move under Chief Executive Raj Subramaniam that aims to boost profits and improve the performance of its Ground division.
An expanded version of this report appears on WSJ.com.
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