FedEx to cut between 1,700 and 2,000 back office jobs in Europe
By Michele Maatouk
Date: Wednesday 12 Jun 2024
(Sharecast News) - US parcel delivery firm FedEx said on Wednesday that it plans to axe between 1,700 and 2,000 back-office and commercial jobs in Europe as it looks to cut costs amid a slump in freight demand.
In a filing with the US Securities and Exchange Commission, the company said the execution of the plan is subject to a consultation process that is expected to occur over an 18-month period.
FedEx expects the pre-tax cost of the severance benefits and legal and professional fees to be provided under and related to the plan to range between $250m and $375m in cash expenditures.
These charges are expected to be incurred through fiscal 2026 and will be classified as business optimisation expenses, it said.
The group expects savings from the plan to be between $125m and $175m on an annualised basis beginning in fiscal 2027.
"FedEx is transforming to best match changing market dynamics and meet the needs of our customers," it said.
"Alongside the work we've done to optimise our networks, we're taking necessary actions to streamline many of our functions to reduce structural costs while continuing to deliver outstanding service to our customers. We do not take these decisions lightly, but they are essential to putting FedEx on the right path for the future."
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