From the Wall Street Journal Logistics report:
FedEx Corp. is hunkering down in the face of what it calls a trade slowdown.
The parcel giant is starting a voluntary buyout program for some workers after problems in its express delivery business, the WSJ’s Paul Ziobro and Patrick Thomas report, and it’s pulling back international expansion ahead of what it says will be a further slowing of global trade.
The company also cut its profit targets for the current fiscal year ending next May after reporting its second-quarter profit rose 8%, behind a 9.2% gain in revenue to $17.8 million.
The downbeat outlook is the latest in a growing stream of reports from the logistics sector suggesting the red-hot demand seen earlier in the year is running out of steam. That’s left FedEx reconsidering growth plans and looking for a projected $225 million to $275 million in cost savings from its buyout program in fiscal 2020.