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FedEx is changing the way it does business the company on Wednesday announced it will combine its Express and ground delivery units into a single entity abandoning a structure that has been in place for roughly 20 years the move comes as FedEx looks to slim its bloated infrastructure and better compete with Rivals ups and amazon.com it also comes almost a year after activist investor d e Shaw pushed for change at the delivery service and won two additional board seats weakening demand for shipping amid a slowing economy has intensified pressure on chief executive officer Raj subramaniam to streamline operations the new structure will create an entity similar to that of cost-conscious rival UPS which has outperformed FedEx despite having a more expensive union labor force subramaniam said FedEx will use a hybrid employee and contractor model for deliveries adding that the company will continue to operate under a law that allows it to remain non-union the new streamlining effort is expec