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shares of fedex fell wednesday the drop comes after the courier cut its full year outlook fedex is grappling with the labor shortage thats driving up costs and slowing down deliveries ahead of the all important peak holiday season the firm said the staffing problems forced it to shell up 450 million dollars in additional year-over-year costs tied to higher pay overtime and payouts to third parties to help it meet shipping obligations chief operating officer raj subramaniam called the worker shortage quote the biggest issue facing our business adding overcoming staffing and retention challenges is our utmost priority to meet the challenge and ease the strain fedex plans to hire 90 000 holiday workers this year thats a jump from the 70 000 staff it added for the winter season last year it hired 55 000 the year before that its main rival ups is also looking to bulk up staff for the holidays when package shippers can easily see package volumes double shares of ups traded lower in early