MEMPHIS, Tenn. — FedEx will spin off its FedEx Freight division, creating a new publicly traded company, the board of directors announced Thursday. The separation is expected to be completed in the next 18 months. “This is the right time to pursue a separation as we respond to the unique dynamics of the LTL market,” said Raj Subramaniam, FedEx Corp. president and chief executive officer in a news release. “This announcement is a testament to the strength of the business our team has built, and to our dedication to doing what’s best for our customers, our team members, and our stockholders. Through this process, we will unlock value for our Freight business and position FedEx to create even greater value for stockholders.” FedEx Freight, which handles bulk cargo shipping, reported fiscal year 2024 revenue of $9.4 billion. The company says it is the largest LTL carrier with the broadest network and fastest transit times in its industry. FedEx revenue totaled $78.3 billion across its remaining business segments. FedEx confirms ‘small number’ of layoffs The company is headquartered in Memphis, which is home to its World Hub. It employs some 500,000 worldwide.