FedEx to cut up to 2,000 jobs in Europe

FedEx to cut up to 2,000 jobs in Europe

FedEx plans to cut up to 2,000 jobs in Europe in response to tepid demand
FedEx plans to cut up to 2,000 jobs in Europe in response to tepid demand. Photo: JUSTIN SULLIVAN / GETTY IMAGES NORTH AMERICA/Getty Images via AFP/File
Source: AFP

FedEx will eliminate up to 2,000 jobs in Europe as part of a cost-cutting drive in response to lackluster demand, the shipping company announced Wednesday.

The company, which is based in the southern state of Tennessee, said the targeted positions will cover back-office and commercial functions.

The plan is to eliminate between 1,700 and 2,000 jobs "subject to local law and consultation processes," the company said, adding that the process will unfold at a country-by-country level "with differing timelines across the region."

The company said there would be no impact on customers or service.

"We're taking necessary actions to streamline many of our functions to reduce structural costs while continuing to deliver outstanding service to our customers," said Richard Smith, chief operating officer for FedEx's international division.

"We do not take these decisions lightly, but they are essential to putting FedEx on the right path for the future."

Read also

US consumer inflation falls before Fed interest rate decision

The job cuts come as FedEx doubles down on expense reduction and downsizing in response to demand across its businesses that ranged from flat to lower in the most recent quarter.

Chief executive Rajesh Subramaniam said in March that the company expected to execute $1.8 billion in permanent cost cuts in fiscal 2024 with another $2.2 billion planned in fiscal 2025.

FedEx has reduced its overall workforce by nearly 22,000 over the last year, chief financial officer John Dietrich said on a March 21 conference call.

Source: AFP

AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.