FedEx Corporation has announced a major leadership move in preparation for spinning off its FedEx Freight business into a standalone publicly traded company. Industry veteran and long-time FedEx executive John A. Smith will take the reins as CEO of the new LTL (less-than-truckload) company, marking a strategic shift in FedEx’s operational structure.
Smith currently serves as FedEx’s President and Chief Operating Officer, U.S. and Canada, and previously led the FedEx Freight unit from 2018 to 2023. His deep experience and operational knowledge are expected to play a critical role in ensuring a smooth transition as FedEx separates its freight operations from its core parcel delivery business.
This move is part of FedEx’s broader plan to unlock shareholder value by allowing the LTL segment to operate as a pure-play freight company, better aligned with the specific demands of the trucking industry. The freight spin-off is expected to occur in the second half of 2025, creating a company that will continue to leverage the vast FedEx Freight network of over 400 service centers, 30,000 vehicles, and a workforce of more than 40,000 employees.
FedEx Chair and CEO Raj Subramaniam stated that Smith is the “right leader at the right time,” citing his proven track record of operational excellence and leadership. Smith’s appointment signals a focus on continuity, experience, and long-term freight performance.
The new company will maintain close commercial and operational ties with FedEx, ensuring continued coordination on shipping technology, customer service, and logistics infrastructure. However, it will operate under its own brand and leadership, providing a more tailored strategy in the increasingly competitive LTL market.
Why It Matters
This strategic spin-off is designed to help FedEx sharpen its focus across business units, improve customer service efficiency, and maximize value in both the parcel and freight sectors. The move also positions the new freight company to better compete with specialized rivals like XPO, Old Dominion, and ArcBest. At The Expedited Company FedEx Freight are one of a large number of LTL providers that we work with providing you with an array of options for LTL shipping, call 844-382-5068 for more information.