The Clap FedEx (NYSE:FDX) will cut an additional $1bn in costs following weaker-than-expected demand.
What The company plans to save $3.7bn from cost cuts in fiscal 2023 to improve profitability.
Global volume for shipping has gone down, as consumers shop and rely less on shipping services. Most cost cuts will come from FedEx’s Express unit.
So What Lower global demand has hurt FedEx’s earnings, as a worldwide recession edges closer and closer. FedEx’s Express unit was the segment that showed the biggest weakness, with operating profit down 64% YoY during the fiscal Q2 2023 compared to the year before.
Now What FedEx will cut more flights and adjust the ground unit to make pick-up and delivery more cost-efficient.