FedEx offers buyouts with up to two years pay

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NEW YORK FedEx (FDX) will be offering some employees up to two years pay to leave the company next year.

The voluntary program is part of an effort by the second-biggest package delivery company to cut annual costs by $1.7 billion within three years.

Employees who volunteer for the program will receive four weeks of pay for every year of service, capped at two full years of base pay.

Those eligible will be notified in February, and have until April to apply. They'll be informed in May if they are accepted. The first wave of employees will leave on May 31, the last day of FedEx's fiscal year.

FedEx, which is based in Memphis, Tenn., is responding to a slow-growing global economy. It also plans shed aircraft and underused assets to cut costs.