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.

Operations:

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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