FedEx CEO believes 'worldwide recession' is looming after seeing sharp drop-off in shipping volume, sending company's shares plunging 23%

The CEO of FedEx has issued a grim warning, saying that he believes a worldwide recession is looming after the company saw a sharp decline in shipping volume in recent months. In an interview with CNBC on Thursday, FedEx CEO Raj Subramaniam said 'I think so' when asked whether the economy is 'going into a worldwide recession.' 'But you know, these numbers, they don't portend very well,' added Subramaniam, who said that the company's dismal latest profit projections were due to 'the macro situation that we're facing'. Shares of FedEx plunged 23 percent at the opening bell on Friday, after the company said a global demand slowdown accelerated at the end of August and predicted that it would worsen in the current quarter. FedEx shocked Wall Street on Thursday by scrapping its earnings forecast for its current fiscal year, which it had issued less than three months ago. In response to a sharp decline in business, the company said it will cut costs by closing over 90 FedEx Office locations and five corporate offices, pausing new hiring and operating fewer flights. FedEx, based in Memphis, Tennessee, warned it will likely miss Wall Street's profit target for its fiscal first quarter that ended August 31, and warned that business would likely weaken further in the current quarter.