FedEx announced significant cost-cutting initiatives on Thursday in response to what it described a softening in the global volume of shipments.
It also withdrew its full-year projections.
CEO Raj Subramaniam said in a press release “Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S.”
Adding “While this performance is disappointing, we are aggressively accelerating cost reduction efforts.”
In Thursday’s extended trading, FedEx stock decreased by roughly 12%.
The adjustments coincide with fiscal first-quarter earnings that significantly missed Wall Street forecasts.
The corporation blamed its poor performance in the first quarter on a number of weaknesses in Asia as well as service issues in Europe.
