The CEO of FedEx, Raj Subramaniam said he expects and warns of a global recession in the economy.

Image Fedex Twitter

Raj Subramaniam, the CEO of FedEx, told Jim Cramer on CNBC on Thursday that he thinks the world economy is headed for a recession. After FedEx failed expectations for revenue and earnings in its first quarter, the CEO became pessimistic. Additionally, the business revoked its full-year forecast.For FEDEX, the news is not positive. Shares of FedEx dropped by 21% on Friday morning.

Due to what the firm described as a softening in the global volume of shipments, it had already announced considerable cost-cutting initiatives.The business will delay hiring while closing 90 offices and five corporate locations.“Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S.,” CEO Raj Subramaniam said in a  press release Thursday. “While this performance is disappointing, we are aggressively accelerating cost reduction efforts.”

After FedEx pulled its full year forecast late on Thursday and warned that a slowing economy would result in a $500 million shortfall in sales, the company’s shares fell by 24%. The express delivery business of FedEx (FDX) has been harmed by the faltering global economy, notably in Asia and Europe. They reported the demand for parcels significantly decreased in the last few weeks of the quarter.

Fedex will hosts its Earnings Call September 22, 2022 04:30 PM CT and its Annual Meeting of StockholdersSeptember 19, 2022 08:00 AM CT

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