FedEx is planning to cut an additional $1 billion in costs, citing weak demand that led to a disappointing profit for Q2 2023, which ended Nov. 30. Most of the cuts are expected to impact the Express unit through measures including fewer flights. The reductions will add to cost-cutting measures announced in September to bring FedEx’s total fiscal savings plan for 2023 to $3.7 billion.
FedEx had expected revenue of $23.7 billion for the quarter but only brought in $22.8 billion. Net income fell to $788 million for the quarter, down from $1 billion a year earlier.
