FedEx shares are close to a resistance level from August 2022 as the company undergoes a restructuring plan.
FDX – Weekly Chart
The price of FDX trades at $228.83 and has a resistance level of $239.74.
FedEx has announced a corporate restructuring as it looks to cut costs. The company will bring all its business segments under one roof with Federal Express Corporation. The move is part of an ongoing plan to cut costs by $4 billion.
FedEx Restructures To Cut Costs
FedEx announced that it will cut staff by 25,000 in May.
The logistics giant has struggled with slowing service demand as economic growth slows. Inflationary pressures are also part of that slowdown. The company plans to restructure its business operations and improve efficiencies and customer services.
The company is seeking to compete better with UPS and Amazon despite a deflating e-commerce delivery bubble and the threat of a US CEO Raj Subramaniam said:
“We believe now is the right time to reorganise how we work together”.
“We will be leaner, more agile and better positioned to execute on our mission to help customers compete and win with the world’s smartest logistics network.”
In its most recent results, FedEx announced revenues dropping to $22.3 billion from $23.6 billion. Net income also slipped from $1.11 billion to $711 million for the same period last year. However, FedEx executives said they were on track to hit $1 billion in permanent cost cuts for the financial year to May 31.
Traders can monitor the upcoming resistance and see how investors react to the latest cost-cutting drive from the logistics firm.
