Source: Fortune
Summary
FedEx CEO Raj Subramaniam is navigating the company through a period of “re-globalization” following the imposition of tariffs by the Trump administration. Subramaniam, who took over as CEO in 2022, learned from his mentor and FedEx founder Fred Smith that “change is part of our culture.” The company has adapted to new trading relationships and launched new routes and facilities in Asia, while also undertaking a cost-cutting program. Despite the challenges, Subramaniam is confident about the demand for FedEx’s services. The company’s revenue and profits have risen, and its global expansion is in “early innings.”
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The numbers tell one story. FedEx shares plunged 20% after the tariffs were imposed, but have since recovered, rising over 50% from April lows. The company’s revenue and profits have also risen, with revenue reaching $67.9 billion and profits reaching $3.4 billion. Subramaniam is confident about the demand for FedEx’s services, saying “people want to trade and travel.” The company’s global expansion is in “early innings,” with most of its capacity and customers remaining in the US. The CEO is undertaking a big cost-cutting program, combining FedEx’s ground and air networks, and spinning off FedEx Freight. Subramaniam’s 30 years at FedEx give him a “natural advantage” as CEO, allowing him to navigate the company through this period of change. The era of “re-globalization” is a signal that the company is shifting its focus from the US to other geographies.
Author: Evan Null
