FedEx axing up to 2,000 jobs across Europe to cut costs

Up to 2,000 jobs are being cut across FedEx in Europe in the latest move by the parcel delivery giant to slash costs.

The Memphis-headquartered group revealed plans to cut its European back-office and commercial workforce by 1,700 to 2,000 over the next 18 months.

It employs nearly 50,000 people across Europe.

FedEx said the jobs cull, which is subject to consultations, will help it save between 125 million US dollars (£97.2 million) and 175 million US dollars (£136.2 million) a year, starting from 2026-27.

But it will also cost the group between 250 million US dollars (£194.5 million) and 375 million US dollars (£291.8 million) in redundancy payments and related expenses.

It sees yet more jobs stripped out at FedEx after it announced a plan last year to restructure its delivery networks and save 4 billion US dollars (£3.1 billion) in costs by the end of 2024-2025, including 1.8 billion US dollars (£1.4 billion) in the year to the end of May 2024.

FedEx revealed in March that its workforce had shrunk by nearly 22,000 last year through job losses and staff turnover.

The group said the latest cost-cutting plans would see some roles axed and teams merged together in the affected back-office and commercial operations, while “certain activities performed across the region will also be consolidated to be located in select shared activity centres”.

But it stressed the cuts will not impact customers or its delivery service.

Richard Smith, chief operating officer of FedEx International, said: “Alongside the work we’ve done to optimise our networks, we’re taking necessary actions to streamline many of our functions to reduce structural costs while continuing to deliver outstanding service to our customers.

“We do not take these decisions lightly, but they are essential to putting FedEx on the right path for the future.”

FedEx has had a presence in Europe since 1984.

The division is headquartered in Hoofddorp in the Netherlands, with main hubs in Paris and Belgium.

Karen Reddington, president of FedEx Europe, said: “These are difficult changes for any business, and we have in the front of our minds our affected team members and their families.

“In line with our culture, we will conduct this process with the maximum support for those affected and in close consultation with our social partners.”