FedEx on Thursday announced its second $1bn cost-cutting plan in two years after its quarterly profits plunged 75 per cent, far below Wall Street’s expectations.

The package delivery company said the worsening global economy was forcing it to cut more jobs and pay, and reduce working hours as profits in the three months to the end of February plunged to $97m or 31 cents per share, from $393m or $1.26 per share in the same period a year earlier.