FedEx Slides on Skepticism Over New CEO’s Cost-Cutting Plan
- Raj Subramaniam cites ‘difficult operating environment’
- Courier to raise shipping rates, cut flights, close offices
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FedEx Corp. declined after the new CEO’s plan to cut costs and raise shipping rates fell flat with Wall Street, leaving investors concerned about deep challenges including slowing demand and elevated expenses.
The courier said it will cut flights, defer projects and close offices as it seeks as much as $2.7 billion in savings this fiscal year. The steps, outlined late Thursday along with FedEx’s first-quarter earnings report, were in line with preliminary disclosures last week about how the company planned to respond to deteriorating business conditions.