FedEx: warned last Thursday that a sluggish economy may cause it

After FedEx warned last Thursday that a sluggish economy may cause it to fall $500 million shy of

its sales objective, shares of the company fell 21% in premarket trade on Friday. FedEx's express

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delivery business has been harmed by a declining global economy, notably in Asia and Europe.

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The business said that package demand decreased in the last few weeks of the quarter. The

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company announced that in response, it will cut back on staff hours, postpone some hiring plans,

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and close 90 FedEx Office locations in addition to five corporate offices. It will also temporarily

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park aeroplanes. According to FedEx (FDX), its adjusted earnings will be down $260 million, or

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17%, from the same period a year ago. Despite falling short of the company's initial aim, revenue

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increased by $1.2 billion, or 5%. FedEx Ground, the company's major delivery method for US consumers'

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online orders, fell $300 million short of its sales goal. Deliveries are done by independent

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contractors, not employees, for the corporation, and many of these contractors are lamenting the

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unprofitability of their operations due to increased costs for fuel, labour, and new vehicles.

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