FedEx cutting costs, withdraws 2023 guidance
after first-quarter shipments disappoint
CNBC,
by
Jack Stebbins
Original Article
Posted By: Dreadnought,
9/15/2022 6:19:10 PM
FedEx on Thursday withdrew its full-year guidance and announced significant cost-cutting measures following what it called softness in global volume of shipments.
"Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S.," CEO Raj Subramaniam said in the release. "While this performance is disappointing, we are aggressively accelerating cost reduction efforts.As part of these cost-cutting initiatives, FedEx will close 90 office locations, close five corporate office facilities, defer hiring efforts, reduce flights and cancel projects.
FedEx stock fell about 12% in extended trading Thursday.
Reply 1 - Posted by:
SALady 9/15/2022 6:46:46 PM (No. 1278612)
Yeah, I guess none of it has to do with their really bad service.
FedEx used to be really good. But about 3 years ago, their service went down the proverbial toilet. Packages are never delivered on time. Tracking is useless (it says a package will be here on Tuesday, but then on Tuesday it says it will be here on Friday). I don't use them anymore or buy from any company that uses them for shipping. I feel safer with the Post Office these days!!!
8 people like this.
Reply 2 - Posted by:
Proud Texan 9/15/2022 6:49:00 PM (No. 1278615)
I guess I have been living a more charmed life, but FedEx was excellent here until this summer. Since then the service has been just as #1 says.
5 people like this.
Reply 3 - Posted by:
Rich323 9/15/2022 6:53:24 PM (No. 1278620)
Sure number one, the same post office that stuffs ballots (part of 2000 mules on video) in Georgia and other swing states. Don’t forget we SUBSIDIZE that organization with our tax dollars. FEDEX took the hit during the scamdemic along with everyone else. FedEx is a bell weather company in our economics, they go down so goes the economy.
10 people like this.
Reply 4 - Posted by:
stablemoney 9/15/2022 7:18:15 PM (No. 1278640)
When prices rise, people buy less. The only people getting 24% pay raises 2020-2024 are the railroads, and similar for Federal employees. Everybody else is getting nothing.
11 people like this.
Reply 5 - Posted by:
Skinnydip 9/15/2022 7:21:55 PM (No. 1278643)
Exactly right #3. Allen Greenspan used to say that FedEx was the most important company to monitor the state of the economy.
8 people like this.
Reply 6 - Posted by:
JHHolliday 9/15/2022 7:46:50 PM (No. 1278657)
I hope that I am not coming across as paranoid but I ordered a pair of Mike Lindel’s slippers five days ago. The next day I get a message that they had shipped. So far, no slippers. It wouldn’t surprise me if they were slow-walking Mike’s products or losing them on purpose. I am also a member of the Sons of Confederate Veterans and thus get their monthly magazine. They have had to start putting it in a plain wrapper because postal employees were tearing them up or throwing them away when they saw what it was. Nice. The left, the party of love and tolerance (they say) but they are the most vicious group of haters on the planet.
12 people like this.
Reply 7 - Posted by:
formerNYer 9/15/2022 7:48:52 PM (No. 1278659)
FedEx needs to stop with their "green" agenda and remember their main business is delivering stuff.
That being sad the RECESSION is hurting everyone.
8 people like this.
Reply 8 - Posted by:
SALady 9/15/2022 7:51:02 PM (No. 1278663)
Sorry #2, but FedEx started massively sucking here long before the pandemic hit!!! My husband does a lot of shipping, and receives a lot of deliveries, because of his side job. Until about 2017, he preferred them. But starting around then, FedEx started going downhill quickly. By 2020 they were already so undependable that he stopped using them, and never counted on a package that he was expecting to be on time if it was shipped on FedEx. He was seldom wrong.
I agree the USPS sucks. But at least they deliver packages on time (or maybe one day late at most). When you are counting on parts to make money to feed your family and pay the bills, packages being 3-5 days late, or never delivered, just isn't going to cut it. And sadly that is what has become of FedEx.
5 people like this.
Reply 9 - Posted by:
SALady 9/15/2022 7:51:36 PM (No. 1278664)
Sorry #2, I was actually responding to #3.
2 people like this.
Reply 10 - Posted by:
Mushroom 9/15/2022 8:31:25 PM (No. 1278701)
I am quite failiar with the FedEx system. Express (aka Overnight) is still reliable as far as I have seen. Ground is a different animal all together and really is useless for on time deliveries. Express, is FedEx employees. Ground and Home Delivery is contractors that bid on routes and then hire people to run them. Nothing like the vetting process of express.
LTL is Freight and has the same issues as Ground. As loyal as I am (a retired FedEx employee) I cannot recommend Ground under any circumstances.
3 people like this.
Reply 11 - Posted by:
hershey 9/15/2022 9:50:10 PM (No. 1278742)
I agree with #1,2 and 8...FedEX has become useless to me....I always watch the tracking and several times in the past couple months the webpage says 'out for delivery' and never comes, then next entry is 'recipient unavailable or no address'...and I know I've been sitting at home waiting, in the same house I've lived in for 30 years...I ALWAYS ask for any shipping other than FedEx...UPS has always been reliable...USPS, despite their interactions with the 2020 election debacle (probably not ALL workers) does the job here for me. ....
1 person likes this.
Reply 12 - Posted by:
snakeoil 9/15/2022 11:49:16 PM (No. 1278808)
Am no authority. But UPS is unionized and FeEx isn't. Haven't had anything delivered by FedEx in years. During the past year I lost two packages that were give to UPS. Filled out forms and heard nothing. My favorite delivery service is amazon. Amazon is fabulous. I have ordered stuff from them and it was delivered the same day. The post office is pathetic. Lost letters and packages. If I could I would use amazon to deliver Christmas Cards.
2 people like this.
Reply 13 - Posted by:
jkb 9/16/2022 7:52:37 AM (No. 1279010)
Maybe their global business is down but domestically, we're defaulting to FedEx because snail mail is all too true.
1 person likes this.
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