FedEx plans job cuts in Europe as part of cost-cutting measures

Aims to reduce the number of employees in the back office and sales departments – comprehensive job cuts.

6/13/2024, 3:19 PM
Eulerpool News Jun 13, 2024, 3:19 PM

FedEx, the global parcel delivery service, plans to cut its workforce in Europe by up to 2,000 people. This is part of the company's ongoing efforts to reduce operating costs.

The Memphis-based company announced in a stock exchange release on Wednesday that between 1,700 and 2,000 jobs in the European back-office and commercial teams will be cut. Operations will be consolidated in countries that best match the company's needs and existing real estate portfolio.

This latest round of layoffs at FedEx comes against the backdrop of a continued downturn in the shipping sector, which is weighing on the entire industry. FedEx has already taken several measures to reduce operating costs by billions of dollars, including closing stations and offices, restructuring Ground and Express operations, and reducing the number of employees worldwide.

FedEx anticipates that this current round of layoffs will incur costs of $250 to $375 million by fiscal year 2026. The resulting savings are expected to amount to $125 to $175 million annually starting fiscal year 2027.

According to an annual report as of May 31, 2023, FedEx employed 328,000 full-time employees, 201,000 part-time employees, and nearly 7,000 contractors worldwide. Last year, the company had already announced plans to reduce its management positions by 10%.

FedEx will release its fourth-quarter results on June 25.

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