How FedEx Cuts Up to 2,000 Back-Office Jobs in Europe
How FedEx Cuts Up to 2,000 Back-Office Jobs in Europe

FedEx has announced plans to slash between 1,700 and 2,000 back-office jobs across Europe over the next 18 months. The move is part of a strategy to save $125-175 million annually starting from fiscal 2027, as the company grapples with weak freight demand.

In a filing on Wednesday, FedEx stated that it anticipates incurring pre-tax costs ranging from $250 million to $375 million for legal fees and severance benefits associated with the job cuts.

The decision comes amid ongoing challenges in its air-based Express unit, the company's largest segment, where it continues to face sluggish margin improvement. FedEx is pursuing these cuts as part of a broader $4 billion cost reduction initiative aimed at bolstering margins and addressing the soft demand in its Express operations.

The Memphis-based firm is set to achieve $4 billion in permanent cost savings by the end of its 2025 financial year, underscoring its commitment to streamline operations and improve profitability.

FedEx Corporation, headquartered in Memphis, Tennessee, USA, is a global logistics and delivery services company. Founded in 1971 by Frederick W. Smith, FedEx has grown to become one of the world's largest express transportation companies.


FedEx operates through several segments:

FedEx Express: The largest segment, providing time-definite international and domestic shipping services.
FedEx Ground: Provides small-package ground delivery services in North America.
FedEx Freight: Offers less-than-truckload freight services across the United States.
FedEx Services: Provides sales, marketing, information technology, communications, customer service, and other back-office support functions.
FedEx Logistics: Focuses on supply chain and freight forwarding services.
Other: FedEx Office, FedEx Cross Border, and FedEx Trade Networks.

Global Reach:

FedEx operates in more than 220 countries and territories worldwide, with a vast network of distribution centers, ground hubs, and air hubs. The company employs over 570,000 team members globally.

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