FedEx is planning to cut between 1,700 and 2,000 back-office jobs in Europe, in its latest push to cut costs as the parcel delivery giant combats a slump in freight demand.
The cuts will be spread over 18 months and would result in a pre-tax cost of $250m (€230.5m) to $375m (€345.8m) related to legal fees and severance benefits, FedEx said.
The downsizing will help save between $125m (€115.3m) and $175m (€161.4m) a year from fiscal 2027.
Faced with soft freight demand and slow margin growth in the air-based Express unit, its largest segment, the company has embarked on cost cuts to boost profit.
“Alongside the work we’ve done to optimize our networks, we’re taking necessary actions to streamline many of our functions to reduce structural costs,” the company said.
The Memphis-based firm had outlined plans to cut $4bn (€3.7bn) in costs by 2025 end, including $1.8bn (€1.7bn) in fiscal 2024 ended May.
However, as travel and dining resumed, that trend reversed and was also exacerbated by higher inflation.
UPS has also implemented plans to reduce $1bn (€0.9bn) in cost this year.
It said in January it would cut 12,000 jobs and explore strategic options for its volatile truckload brokerage business Coyote, amid weak demand and overcapacity in the trucking industry.
FedEx had in March raised its fiscal 2024 profit forecast, as cost cuts helped its earnings per share exceed market expectations.
FedEx operates in more than 45 countries and territories in Europe and employs over 52,000 people, according to its website.
Manchester City boss Pep Guardiola, after surviving an early scare against Thomas Frank’s Brentford on Saturday, has name-dropped the Danish tactician to sec
If Ursula von der Leyen thought that winning a European Parliament vote in July was the biggest hurdle she would face in launching her second mandate, the mach
The situation in the European car industry is tense. (archive picture) Keystone An internal paper from the
AFPGermany's Chancellor Olaf Scholz (R) and Kenya's President William Ruto signed the deal in BerlinBerlin has agreed to allow skilled and semi-skilled Kenyan w