FedEx Reorganizes, Will Cut 130 Jobs

FedEx Corp. said it's eliminating 130 jobs in the Austin, Texas, area as it reorganizes a unit and ends a contract to manage warehouses for Dell Computer Corp.

The move at the largest overnight-delivery company's FedEx Supply Chain Services Inc. follows about 120 cuts in the unite last month in California, Colorado, North Carolina and Ohio. The Texas jobs will end between May 31 and July 31.

FedEx, based in Memphis, Tenn., has about 220,000 employees worldwide.

Under a contract that expires July 31, the FedEx unit manages inventories and delivers computer parts, moves parts between Dell assembly plants in Austin and matches personal computers with monitors for shipping.

FedEx shares fell 51 cents to $40.01 on the NYSE.