FedEx’s CEO Raj Subramaniam, told Jim Cramer of CNBC that we are heading into a worldwide recession. FedEx’s top executive, who took over the role at the beginning of this year, said that declining worldwide cargo volumes were the primary factor in the company’s unsatisfactory performance.

“I’m very disappointed in the results that we just announced here, and you know, the headline really is the macro situation that we’re facing,” Subramaniam said during the interview.

Finally, the CEO said the drop in volumes is far-reaching. “We are a reflection of everybody else’s business, especially the high-value economy in the world,” he concluded.

Watch the full interview below:

This helps explain why futures are sliding further this morning.

In a surprise pre-announcement Thursday after the close, FedEx said it’s withdrawing its fiscal year 2023 earnings forecast as a result of the preliminary 1Q financial performance and expectations for a continued volatile operating environment.

First quarter results were adversely impacted by global volume softness that accelerated in the final weeks of the quarter. FedEx Express results were particularly impacted by macroeconomic weakness in Asia and service challenges in Europe, leading to a revenue shortfall in this segment of approximately $500 million relative to company forecasts. FedEx Ground’s revenue was roughly $300 million below company forecasts.

FedEx also said it would need to cut costs. “While this performance is disappointing, we are aggressively accelerating cost reduction efforts and evaluating additional measures to enhance productivity, reduce variable costs, and implement structural cost-reduction initiatives. These efforts are aligned with the strategy we outlined in June, and I remain confident in achieving our fiscal year 2025 financial targets.”

Part of the cost-saving measures include closing 90 office locations, closing five corporate office facilities, deferring hiring efforts, reducing flights, and canceling projects.

FDX is down 14% after hours to its lowest since Aug 2020…

This FDX’s biggest daily drop ever…

Coming just hours after The Atlanta Federal Reserve slashed its third-quarter gross domestic product outlook, this is not a good sign for the domestic (or global) economy.