(Reuters) -FedEx Corp said on Tuesday it would further cut its Sunday package deliveries in March, as it looks to align operations with consumer demand.
Many of FedEx’s 6,000 U.S. contractors had complained that there was not enough demand for Sunday deliveries to cover the cost of providing the service.
The adjustment will trim the availability of Sunday service to more than 50% of the U.S. population, the company said in an emailed statement to Reuters. Last year, FedEx scaled back services on the day to 80%, with reductions mostly in rural areas.
The move follows FedEx’s plan to take out $3.7 billion in costs that it announced last year by parking planes, closing offices, stopping rural Sunday delivery and furloughing workers in its freight division.
Insider, which first reported the latest delivery reduction plan on Tuesday, said the full list of territories maintaining Sunday service would be finalized next month.
“This adjustment will enable FedEx Ground to boost efficiencies while maintaining a competitive advantage in weekend coverage,” FedEx said.
The U.S. delivery giant has been trying to cut costs to offset cooling demand and pivot towards more profitable deliveries.
(Reporting by Nathan Gomes and Kannaki Deka in Bengaluru; Editing by Shailesh Kuber and Maju Samuel)