FedEx Corp. (NYSE:FDX) recently announced that it is reducing its global workforce by 10%. The layoffs will primarily affect senior management, including officers and directors. According to CEO Raj Subramaniam, the move was necessary to make the company more efficient.
FedEx is a multinational delivery services company that offers transportation, e-commerce, and business services worldwide.
FedEx becomes the latest company to join the growing list of companies laying off employees to reduce costs due to an uncertain economic environment.
Marred by slowing consumer demand, FedEx has been reducing Sunday deliveries in the current Fiscal Year 2023 (beginning June 2022). Furthermore, in September 2022, the company announced a hiring freeze along with the closing of 90 FedEx office locations and some corporate offices.
Is FedEx a Buy, Sell, or Hold?
Turning to Wall Street, FedEx has a Moderate Buy consensus rating. That’s based on eight Buys and nine Holds assigned in the past three months. The average price target of $198.59 implies 1.7% downside potential.
It is worth mentioning that both insiders and hedge funds are bullish on FDX stock. Moreover, the stock carries an Outperform Smart Score of nine on TipRanks, which implies it has the potential to beat market averages.
