**FedEx Plans to Cut 1,700-2,000 Jobs in Europe**
In response to the decline in freight demand, FedEx is planning to cut 1,700 to 2,000 jobs in Europe as part of its ongoing efforts to reduce costs. The parcel delivery giant announced the proposal to streamline its European workforce on Wednesday, June 12.
According to a press release, the proposed reduction aims to decrease the number of back-office and commercial team employees by 1,700 to 2,000, while complying with local laws and consultation procedures.
The negotiation process will take place at the national level based on European and local labor laws, with varying timeframes in different regions. Team members will be notified of any updates as the consultation process allows.
FedEx emphasized that these changes will not impact its customers or the service it provides to them.
“FedEx is transforming to best adapt to the ever-changing market dynamics and meet customer needs,” said Richard W. Smith, Chief Operating Officer of FedEx International. “As we optimize our network, we are taking necessary actions to streamline various functions to reduce structural costs while continuing to deliver outstanding service to our customers. These decisions are crucial to putting FedEx on the right path for the future.”
Karen Reddington, President of FedEx Europe, stated, “These changes are challenging for any business. We have taken into account the affected team members and their families. In line with our corporate culture, we will support affected employees to the fullest and closely consult with our social partners throughout this process.”
According to Reuters, the layoffs are expected to be completed within 18 months, with pre-tax costs related to legal fees and severance payments amounting to $250 million to $375 million. This reduction will result in annual savings of $125 million to $175 million for the company starting from the 2027 fiscal year.
The Memphis-based company outlined plans to cut $4 billion in costs by the end of the 2025 fiscal year, including an $1.8 billion cost reduction in the 2024 fiscal year.
FedEx raised its profit expectations for the 2024 fiscal year in March. The cost reductions have helped the company exceed market expectations for earnings per share.
According to its website, FedEx operates in over 45 countries and regions in Europe, with more than 52,000 employees.