“As our team continues to work aggressively to address near-term headwinds, we’re meaningfully strengthening our business and customer experience, including delivering an outstanding peak.”įedEx’s largest company, FedEx Express, took the biggest hit, underperforming analysts’ expectations by $500 million. “We’re moving with speed and agility to navigate a difficult operating environment, pulling cost, commercial, and capacity levers to adjust to the impacts of reduced demand,” said Subramaniam in Thursday's earnings report. 15, FedEx stock plunged more than 20%, one of its biggest single-day drops ever.įedEx cuts: As FedEx looks to cut more than $2 billion, here's everything we know (and don't know yet)įedEx news: FedEx sues contractor in dispute over operating cost strains CEO Raj Subramaniam blamed decreased demand and volume softness as well as increased operating costs due to inflation, prompting the company to announce the aggressive cost-reduction plan.įedEx said it expected those economic factors to persist, predicting the world market to enter a recession. 31, in which it withdrew its previous guidance for fiscal year 2023 and declared that the slowing of the global economy had impacted business more than expected. The figures came as no surprise after the company released a preliminary earnings report last week for its first quarter, ended Aug.

The Memphis logistics giant made $23.2 billion in revenue for the 2023 fiscal year’s first quarter, a 5.4% increase from the year-before quarter’s $22 billion. The company posted an adjusted net income of $905 million, a 23.9% drop from last year's $1.19 billion. As a result, the company plans to cut costs by between $2.2 billion and $2.7 billion in fiscal year 2023.

View Gallery: See inside the FedEx super hub at the Memphis airportįedEx announced disappointing results in its first-quarter earnings Thursday, especially in its FedEx Express segment.

Fedex zone chart 2022