New York  - The second largest US-package delivery company FedEx will cut 900 jobs in its freight unit due to dropping demand in the recession, the company said.

So far the company has not announced where exactly the lay offs will occur for the 900, which represent 2.5 per cent of its 35,000 employees will be laid off.

FedEx had already lowered its spending on salaries and employee benefits. (dpa)