FedEx plans to combine its ground, air, and other operations by next year as part of a $4 billion cost-cutting plan. The company announced on Wednesday that FedEx Express, FedEx Ground, FedEx Services, and other operating companies will be merged into a single entity by June 2024 in a company-wide reorganization, while FedEx Freight will remain as a stand-alone company. Raj Subramaniam will serve as president and CEO of the combined organization, with John Smith as president and CEO of U.S. and Canada ground operations, and Richard Smith as president and CEO of airline and international at FedEx Express. The aim is to achieve permanent cost reductions of $4 billion at some point during fiscal 2025. FedEx had said previously that it was maneuvering to address rising operating expenses, including the closure of over 90 FedEx Office locations and five corporate offices. In addition, the company announced a 10% increase in its annual dividend for fiscal 2024. Before the opening bell, shares rose by over 3%.