In an effort to combat the global slowdown in business, FedEx on Thursday announced it will increase its ground and express shipping rates next year.
The Memphis-based company said it would increase the shipping cost by an average of 6.9%, and freight rates will also increase by an average of 6.9% to 7.9%. The company also plans to cut costs by over $2.7 billion in an attempt to reduce its expenditure.
The announcement comes after CEO Raj Subramaniam warned of a recession last week after FedEx saw a global decline in package delivery.
FedEx shares plunged 21% last week—the highest one-day drop for the company—as the company faced an overall decline in demand for delivery.