FedEx’s Profit Outlook Falls Short as Job Cuts Reach 29,000
- Courier is slashing costs in response to waning package demand
- Shares decline, dragging down rival UPS and European shippers
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FedEx Corp. said it cut 29,000 US jobs over the past year and issued a 2024 profit outlook that missed Wall Street’s expectations as it continues to trim costs in the face of waning package delivery demand.
The company is slashing expenses as the industry copes with a decline in package volume following two years of surging demand fueled by online shopping. Adjusted earnings in the next fiscal year are projected be in the range of $16.50 to $18.50 a share, the midpoint falling short of the $18.31 average of analysts’ estimates compiled by Bloomberg.