US delivery firm FedEx is to spend more than $3.2bn on boosting wages, pensions and capital investment as a result of president Trump’s tax reforms.
Fedex said it would spend more than $200m on increased pay and bonuses to its 400,000 staff, and contribute $1.5bn to the company’s pension plan.
The firm will also be investing $1.5bn in a “significant” expansion of its FedEx Express Indianapolis hub over the next seven years, while the Memphis SuperHub will also be modernised and enlarged in a major new programme.
FedEx said in a statement it believes the Tax Cuts and Jobs Act is likely to increase GDP and investment in the United States.
The FedEx share price had fallen 1.9% to $266.15 by midday in New York following the announcement.