FedEx to cut up to 2,000 jobs in Europe in cost-cutting drive – Latest News

NEW YORK

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 has announced.

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.”

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.