FedEx to cut 1,700-2,000 jobs in Europe across back-office, commercial functions

In a regulatory filing, FedEx announced that its Federal Express Corporation, or FEC, subsidiary announced a workforce reduction plan in Europe as part of its ongoing measures to reduce structural costs. The execution of the plan is subject to a consultation process that is expected to occur over an 18-month period in accordance with local country processes and regulations. The plan will impact between 1,700 and 2,000 employees in Europe across back-office and commercial functions. “We expect the pre-tax cost of the severance benefits and legal and professional fees to be provided under and related to the plan to range from $250M-$375M in cash expenditures. These charges are expected to be incurred through fiscal 2026 and will be classified as business optimization expenses. We expect savings from the plan to be between $125M-$175M on an annualized basis beginning in fiscal 2027. The actual amount and timing of cost savings resulting from the workforce reduction plan are dependent on local country consultation processes and regulations and negotiated social plans and may differ from our current expectations and estimates.”