Global volume weakness took a toll on FedEx Corporation’s FDX operations. As a result, FDX’s freight unit reportedly decided to furlough employees in some U.S. markets.More specifically, sluggish cargo demand compelled management to take this step. With economies opening up as coronavirus restrictions are withdrawn, the surge in e-commerce demand, evident during the pandemic, slackened. This, in turn, dwindled demand for freight carriers, which is not a welcoming development for FDX. Management had said in September, while releasing the first-quarter fiscal 2023 results, that FDX expects to generate cost savings in the $2.2-$2.7 billion range for fiscal 2023.However, management’s statement bore a silver lining, suggesting that it "will continue to evaluate the environment and bring back furloughed employees as business circumstances allow." Moreover, some eligible employees will be offered an opportunity to get permanently transferred to the markets with hiring requirements. The freight unit will not stall the health benefits and other financial incentives to the employees being furloughed.FDX is not the only company to have taken such an action to combat the shrinking demand scenario. Earlier this month, ride-hailing company Lyft LYFT announced that it is laying off approximately 700 employees or 13% of its staff. Management took this decision due to the economic slowdown.Lyft had already trimmed its workforce by 60 in July. In response to this downturn, it decided to stop hiring through the year-end. LYFT apart, quite a few tech companies announced job cuts/hiring freezes due to this weakening demand scenario.Zacks Rank & Key PicksFedEx currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.In the broader Zacks Transportation sector, investors may consider better-ranked stocks like Covenant Logistics CVLG and Ryder System R.Covenant Logistics offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.The gradually improving freight market scenario is a tailwind to Covenant. CVLG’s cost-control efforts are appreciated as well. CVLG currently sports a Zacks Rank #1. The stock has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 10.1% upward over the past 60 days.Miami, FL-based Ryder provides integrated logistics and transportation solutions. With improved economic and freight market conditions, R is benefiting from higher rental revenues owing to strong demand and favorable pricing. R’s acquisitions of Whiplash and Midwest Warehouse & Distribution System expand its e-commerce fulfillment network and boost multi-client warehousing capabilities. The transactions are expected to drive growth in the supply-chain solutions segment.Ryder currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for R’s 2022 earnings has been revised 7% upward in the past 60 days. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FedEx Corporation (FDX): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report Lyft, Inc. (LYFT): Free Stock Analysis Report Covenant Logistics Group, Inc. (CVLG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research