• FedEx will spin off its freight business into a new publicly traded company.
• FedEx Freight will separate from FedEx over the next 18 months.
• Express delivery services have seen slowing demand for their services.

FedEx is spinning off its freight arm into a new publicly traded company.

Called FedEx Freight, the new company will handle large cargo, while FedEx will continue to handle the parcel shipping business that shoppers might be more familiar with as their holiday packages arrive.

The separation will happen over the next 18 months, FedEx said in a statement on Thursday. Shares of FedEx jumped about 9% in after-hours trading.

"Through this process, we will unlock value for our Freight business and position FedEx to create even greater value for stockholders," CEO Raj Subramaniam said in the statement.

FedEx also cut its profit estimates for its 2025 fiscal year in earnings released on Thursday and cited a "challenging demand environment." It said it had seen lower-than-expected FedEx Freight revenue and profit as "sustained weakness in US industrial production continued to pressure less-than-truckload industry demand."

The spinoff will allow FedEx to focus more on the parcel shipping market, it said in its statement.

Bloomberg reported in October that the company, along with rival UPS, has faced less demand this year for next-day shipping as many customers look to save money with slower options.

• Americans should send packages early to meet holiday shipping deadlines and avoid delays.
• UPS hires thousands of seasonal workers to manage increased holiday shipping demand.
• Here are FedEx, USPS, and UPS' specific deadlines for Christmas delivery.

The holiday season is here, and while delivery drivers work hard to ensure parcels reach their destinations on time, gift-givers can help by sending them before the shipping deadlines.

With Christmas less than two weeks off, there are mere days left to mail gifts to your loved ones. Carriers prep for the busy holiday time by hiring seasonal employees to assist drivers or deliver packages themselves.

In 2023, UPS said it'd hire 100,000 seasonal workers for the busy holiday season; this year, they said they're hiring more than 125,000. Although many carriers' deadlines allow for last-minute shipments — 48 hours before December 25 — it's best practice to get your gift shipped off as early as possible.

Here's when three big mail carriers say you need to ship your gifts by.

FedEx

There were five fewer shopping days between Thanksgiving and Christmas this year, FedEx Executive Vice President and Chief Customer Officer Brie Carere noted in a press release. As such, FedEx says it is doing what it can to cut down on holiday shipping chaos.

FedEx is giving consumers until December 23 to ship their packages within the US, Mexico, Canada, or Puerto Rico for next-day delivery.

USPS

If using the United States Postal Service, consumers should mail their gifts by December 21 to arrive before Christmas in the US, but those shipping to Alaska and Hawaiian must have packages in by December 20.

December 16 is the deadline for shipping internationally to Asian and European countries.

It's unclear if shipping to Canada in time for Christmas is possible. USPS previously said mail service to Canada was suspended due to the ongoing postal worker strike, but Labor Minister Steven MacKinnon asked for Canada Post union employees to be ordered back to work on Friday, according to the Toronto Star.

UPS

Those shipping with UPS have until December 23 to mail their packages within the US or Canada using its Next Day Air service. Rates will depend on when you ship and where you're shipping to.