The company with a worldwide portfolio of shipping, transportation, e-commerce, and business service, FedEx has said Thursday it is shuttering storefronts and corporate offices.
The company also said, “The high operating expenses were also a drag on the company’s results.” Due to certain factors, the company has also put off new hires due to frequent a drop-off in its global package delivery business.
The company has planned and said it will cut costs by closing over 90 FedEx Office locations and five corporate offices. Resulting in deferring new hires and operating fewer flights.
FedEx CEO Raj Subramaniam said in a statement, “Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S.”
“We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first-quarter results are below our expectations”, Raj Subramaniam added.
The company’s FedEx Express business was particularly hurt by challenges in Europe and weaker economic trends in Asia, which led to a roughly $500 million revenue shortfall for the segment. FedEx Ground revenue, meanwhile, came in about $300 million below the company’s forecasts.
The company scrapped its forecast for its earnings in its current fiscal year that it had issued less than three months ago.
