As part of its ongoing cost-reduction strategy, FedEx is set to cut up to 2,000 jobs across its European operations. The Memphis-based parcel- delivery giant announced plans to reduce its European back-office and commercial workforce by 1,700 to 2,000 positions over the next 18 months.
This move is said to affect some of the nearly 50,000 employees in the region. Additionally, it is expected to save the company between $125 million and $175 million annually starting from 2026-2027. However, the job cuts will incur costs of $250 million to $375 million in redundancy payments and related expenses.
As part of the restructuring, certain roles will be eliminated, and teams within the back-office and commercial operations will be merged. Additionally, some activities across the region will be consolidated into select shared activity centres.
Despite these changes, FedEx assured that customer service and delivery operations will remain unaffected. The company further emphasised that the decision to cut jobs was difficult but necessary to ensure long-term stability and efficiency.
This latest round of cuts follows FedEx’s broader restructuring plan, which aims to save $4 billion by the end of 2024-2025, including $1.8 billion in savings during the year ending May 2024. The company has already reduced its workforce by nearly 22,000 employees over the past year through job losses and attrition.
FedEx has been operating in Europe since 1984, with its regional headquarters in Hoofddorp, Netherlands, and major hubs in Paris and Belgium.
