Recession is coming... FedEx stopped hiring new employees!?

Sowmiya Sriram
Recession is coming... FedEx stopped hiring new employees!?

FedEx has said it is holding back on hiring new employees due to recession fears. Logistics company FedEx, headquartered in Memphis, Tenn., said its logistics orders have been declining over the past few months due to the global economic environment. raj Subramaniam, an Indian-American, took over as the new CEO of FedEx, the leading US courier delivery service company, in June.
However, in an interview with CNBC news agency, he said that the number of shipments dropped in the first quarter was a big disappointment. Therefore, FedEx has decided to reduce the number of stores and temporarily stop hiring new employees.
FedEx is closing at least 90 FedEx offices and 5 corporate offices worldwide. It has also decided to cut sunday services. When asked if FedEx was preparing for a recession, raj Subramanian responded by saying yes. These numbers are not good, he said. The company said orders are likely to decline further due to the global economic slowdown.
FedEx reported a $300 million drop in revenue than expected. FedEx is mostly doing e-commerce delivery in the US. european and Asian business has also suffered a decline. This one segment alone has seen revenue decline by as much as $500 million.
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