FedEx cutting costs, withdraws 2023 guidance after first-quarter shipments disappoint

(CNBC) – FedEx on Thursday withdrew its full-year guidance and announced significant cost-cutting measures following what it called softness in global volume of shipments.

“Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S.,” CEO Raj Subramaniam said in the release. “While this performance is disappointing, we are aggressively accelerating cost reduction efforts.”

As part of these cost-cutting initiatives, FedEx will close 90 office locations, close five corporate office facilities, defer hiring efforts, reduce flights and cancel projects. FedEx stock fell about 12% in extended trading Thursday.

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