FedEx shares fell more than 20% after the company reported a swift downturn in shipping volumes in recent weeks as macroeconomic trends worsened, prompting a round of belt tightening to preserve profits.
The warning, issued late Thursday, presents a fresh challenge for FedEx’s new Chief Executive Officer Raj Subramaniam, who took over in June from founder Fred Smith, and offers evidence that the global economy may be on shaky ground, some analysts said.
