Shipping, logistics and supply chain management company FedEx Corporation has laid off 1,000 employees after reporting a 75 per cent drop in third quarter (December-January 2008-09) results.

The move comes after FedEx reported earnings of $97 million in the December-February 2008-09 period compared with $393 million in the year-ago period.

Nearly 500 of the 1,000 workers dismissed worldwide were from Memphis, Tenn. in the US, where it has the largest unit and its headquarters, sources said.

FedEx has about 33,000 employees in the Memphis area and 290,000 worldwide.

In February, FedEx had cut 900 positions at its FedEx Freight subsidiary citing continued decline in consumer spending and unprecedented pressures on the trucking industry.

In mid-March, FedEx announced plans to cut back on truck and jet capacity, reduce working hours and reduce salaries in order to avoid a job cut.

FedEx had in January also announced that the shipping giant would slash its 2009 marketing budget by 25 per cent.

CEO Fred Smith himself has taken a 20 per cent salary cut while he said other senior executives would take a 7.5-10 per cent salary cut. FedEx salaried employees in the US would received a 5 per cent cut, he said.

Those cuts did not include hourly employees, such as package handlers, mechanics and pilots.

FedEx said these cuts along with job cuts across at FedEx Freight and FedEx office divisions and a hiring freeze will help the company save $1 billion.