FedEx hikes package rates, details cost cutting as demand weakens globally - CNBC
CEO Raj Subramaniam cited a tough macroeconomic environment, and said he expects the economy to enter a "worldwide recession." The company withdrew its guidance for the year and said it would slash costs.
In issuing its full first quarter results Thursday, the company said that its Express, Ground and Home Delivery rates will increase by an average of 6.9%.The closure of certain locations, the suspension of some Sunday operations, and other expense actions will save FedEx Ground between $350 million and $500 million, according to the company.
FedEx said it will save an additional $350 million to $500 million by reducing vendor use, deferring projects and closing office locations.