FedEx to Spin Off Freight Biz Because Sometimes Breaking Up Is Good to Do

FedEx just called its movers—literally. The logistics giant is spinning off its $9.4 billion FedEx Freight division into a standalone public company within 18 months. The pitch? More “focus,” “agility,” and, let’s be real, shareholder value.

FedEx Freight, the king of less-than-truckload (LTL) shipping, will now get to flex its muscles solo, boasting the fastest transit times and a 25% annual operating profit growth over the past five years. Meanwhile, FedEx Corp. will stick to its parcel game, with big cost-cutting plans like DRIVE and Network 2.0, targeting $6 billion in savings by 2027.

CEO Raj Subramaniam spun it as a win-win: FedEx sharpens its core strategy, Freight gets its own spotlight, and investors (hopefully) reap the rewards. Both companies will share the FedEx name, keep collaborating on operations, and promise not to lose the “speed and reliability” brand magic.

Wall Street likes a good breakup, and this one’s ripe with potential. Freight’s leading market share, juicy profit margins, and strong balance sheet make it an LTL heavyweight. And for FedEx, shedding a division lets it slim down, cut costs, and focus on parcel delivery dominance.

Now let's hope Amazon likes it...