FedEx is causing waves on Wall Street to close out the week, rolling out a brutal earnings report.
The company reported a revenue shortfall of $500 million thanks to what it calls weakened global demand, particularly in Asia and Europe.
The shipping giant says it will close 90 office locations and five corporate office facilities.
It also will cut flights, defer hiring, and cancel projects.
We reached out to FedEx about the impact at its hub in the Lehigh Valley. The company had no additional comment.
There are no planes housed here in the area.
FedEx CEO Raj Subramaniam told CNBC he believes the economy will enter a “worldwide recession.”
One local last-mile logistics company we spoke to said their demand continues to increase.
Some analysts think the real cause is rival Amazon, which recently launched a free shipping software for sellers.
Rival UPS announced a few days ago it is trying to hire 100,000 seasonal workers.
Even still, the Fedex News brought UPS shares down around 4% as well.