NEWS

FedEx closing its stores, offices, delaying hires, pulls forecast

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FedEx says a drop-off in its global package delivery business has triggered a belt-tightening move 

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The company said Thursday it is closing storefronts and corporate offices while putting off new hiring 

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The news has FedEx shares plunging 19% in premarket trading 

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The company also said it will likely miss Wall Street’s profit target for its fiscal first quarter, and it expects business conditions to further weaken in the current quarter 

"Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S.," FedEx CEO 

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Raj Subramaniam said in a statement. "We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first-quarter results are below our expectations." 

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The challenges in Europe and Asia led to a roughly $500 million revenue shortfall 

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FedEx Ground revenue, meanwhile, came in about $300 million below the company’s forecasts 

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FedEx now projects adjusted earnings per share of $3.44 and $23.2 billion in revenue 

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Subramaniam noted that he remains confident FedEx will achieve its fiscal year 2025 financial targets 

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