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Shares of the company fell about 5% after the bell.
The deflating e-commerce delivery bubble, recession risks and pressure from an activist investor pushed Tennessee-based FedEx (NYSE:FDX) to begin slashing fixed costs in a bid to protect margins.
In the last year, FedEx has shuttered offices, cut jobs, reduced its fleet of cargo planes and canceled profit-sapping Sunday deliveries in far-flung areas to remain competitive in an unpredictable economy.
While the global shipping downturn has been a margin drag for most operators in the sector, FedEx also faces a balancing act of matching costs and capacity with waning demand.
The company posted an adjusted profit of $4.94 per share for the fourth quarter ended May 31, compared with $6.87 per share a year earlier.
