After the shipping behemoth warned last week that the weakening of global demand had a negative impact on its fiscal first quarter earnings, FedEx on Thursday announced rate increases and outlined its cost-cutting initiatives.

Following the earnings report, which was mistakenly made public before the bell, FedEx’s shares ended the day marginally higher. According to a corporate spokeswoman, “The early results release was a tech issue and not purposeful.”

The company’s stock dropped last week as a result of preliminary revenue and earnings that didn’t meet Wall Street estimates. Raj Subramaniam, CEO, highlighted a challenging macroeconomic environment and predicted that the economy will experience a “global recession.” The corporation announced cost-cutting measures and retracted its annual guidance.

Due to challenges in its markets in Europe and Asia, the world’s largest shipping company battled with low volumes throughout the quarter. Investors scrambled to disentangle FedEx’s internal issues from market difficulties in the wake of the disappointing results, which stunned the market.

The business announced that its Express, Ground, and Home Delivery charges will rise by an average of 6.9% on Thursday when it released its full first quarter results. According to the business, FedEx Freight charges will rise by 6.9% to 7.9% on average.

Additionally, it stated that it expected to save between $1.5 billion and $1.7 billion by cutting flights and storing planes. FedEx Ground will save between $350 million and $500 million as a result of the location closure of some facilities, the suspension of some Sunday operations, and other cost-cutting measures, the company claims.

A further $350 million to $500 million will be saved, according to FedEx, by cutting back on vendor use, postponing projects, and closing down office buildings.

In order to negotiate a challenging operating climate, Subramaniam said, “We’re acting quickly and nimbly, pulling cost, commercial, and capacity levers to react to the implications of reduced demand.”

The business anticipates total cost savings of $2.2 billion to $2.27 billion for its fiscal year 2023.

FedEx maintained its 2025 predictions despite issuing a dire warning last week. The company anticipates between 4% and 6% annual increase in revenue and 14% to 19% annual growth in earnings per share.