FedEx Corporation has announced Raj Subramaniam as the new Chief Executive Officer (CEO) of the company, who now will head the package shipping company with his skills and intelligence after the founder of the express delivery company decided to step down from his position after 50 years of a successful journey with the company.
According to FedEx, 56-year-old Raj Subramaniam is currently serving as the president, will now move to his new position of CEO on June 1, taking over the charge from Fred Smith, who is the legendary founder of the company, will now perform as the executive chairman. With the long-expected promotion of Subramaniam, Smith’s son, Richard W Smith was named as the upcoming head of the express division of FedEx. Smith has been mentioning for two long years about ending his long tenure.
To look after and make necessary improvements in the company, the elder Smith has been in the middle of its campaign, which began with the operation in the year 1973. The changes that have been made recently will help FedEx to cope with the diminishing commercial deliveries, which are affecting sales because of the e-commerce packages that are growing at a fast pace. Fred Smith has said in a statement that he is more than satisfied with the skills and calibre of Raj Subramaniam for taking the company into a very successful future. He is looking forward to focusing on issues of global importance and board governance.
Subramaniam has held a vast variety of positions in his 30-years long tenure with FedEx.
After joining FedEx in 1991, Subramaniam has served in many roles in the company. He had been Chief Operating Officer since 2019, after which he marked many ranks in FedEx. After the announcement of Smith’s son as the chief of the express unit of FedEx, the way for Subramaniam’s journey towards the top became smooth.
According to Satish Jindel, founder of ShipMatrix which is a data and parcel consulting service providing company, Raj Subramaniam will have to face pressure from shareholders to reduce costs, which will include the integration of Express and ground networks of the company, in order to lower the capital expenditure. To deliver more express packages, the company has expanded the use of its ground network in the last year.
FedEx is an American multinational conglomerate company.
Subramaniam has held a vast variety of positions in his 30-years long tenure with FedEx. In 2017, Subramaniam was announced as the chief of marketing and communications, after which he took the charge of the company’s express unit. The company appointed him as the chief operating officer in less than 2 months at the express, due to the sudden quitting of then–COO David Bronczek. He has also served throughout the US and Asia in other roles for the company.
While talking about Subramaniam, Smith lauded his successor in a letter to his employees as a ‘humble and brilliant man’ ad also a person and a great team player with ‘impeccable integrity’. He also said that at a board meeting last week, Smith recommended Subramaniam take charge of the company as the CEO citing the upcoming anniversary of operations completing 50 years. However, Subramaniam has said that he plans to keep the current strategy of the company untouched when he takes over.