FedEx Services is FedEx's behind-the-scenes logistics division, but it also includes FedEx Office, formerly Kinko's. It is one of FedEx's smallest units, with 13,000 employees, all based in the U.S.
FedEx, which is based in Memphis, Tenn., also plans to shed aircraft and underused assets to cut costs.
FedEx's larger rival United Parcel Service Inc., which is based Atlanta, has also said it's reducing costs to make up for slow growth in the global economy.
Shares of FedEx rose 65 cents to $88.78 in afternoon trading Tuesday. UPS shares rose 84 cents to $73.11.
Samantha Bomkamp can be reached at www.twitter.com/SamWillTravel