January 2, 2008: For the first time in its 35-year history, FedEx is getting smaller.

From its signature air express network to the trucks in its far-flung domestic business, FedEx is starting 2009 by grounding aircraft, parking other equipment, cutting capital spending and even cutting executive pay to get the company's scale in line with a declining shipping market.

The cost reductions add up to about $1 billion in FedEx's current fiscal year, which ends May 31, 2009, and at least another $600 million in the following year, cutbacks that appear to be based on equal parts uncertainty and pessimism about the direction of expedited shipping.

Read the full article in Traffic World.