Fed Ex sent shares tumbling in extended trading when it withdrew its full year’s earnings guidance, and reported preliminary first quarter results that failed to meet analyst estimates.

FedEx CEO Raj Subramaniam said in the release, “Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S. We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first quarter results are below our expectations.”

After hours trading saw Fed Ex shares drop by as much as 15%.

In response, Fed Ex announced it was cutting cost by reducing flights, temporarily grounding some aircraft, shutting down over 90 FedEx office locations, and deferring hiring of new employees.

Subramaniam added, “We are aggressively accelerating cost reduction efforts and evaluating additional measures to enhance productivity, reduce variable costs, and implement structural cost-reduction initiatives.”

First fiscal quarter earnings came in at $3.44 per share, well off analyst estimates of $5.10. Revenue came in at $23.2 billion. In June, FedEx predicted full year earnings per share would be somewhere between $22.50-$24.50.

The surprise downgrade reverberated through the market, as FedEx is seen as a bellwether for the rest of the broader global economy. Shares of UPS and Amazon also dropped in after-hours trading. UPS fell more than 5% as Amazon dropped roughly 2%.