The delivery company believes this job reduction will help it save between $125million (£97.2million) and $175million (£136.2million) annually, starting from 2026-27
FedEx, the parcel delivery giant, is set to cut up to 2,000 jobs across Europe in a fresh bid to reduce costs.
The Memphis-based company has unveiled plans to trim its European back-office and commercial workforce by 1,700 to 2,000 over the next year and a half. Currently employing nearly 50,000 people across Europe, FedEx believes this job reduction, which is subject to consultations, will help it save between $125million (£97.2million) and $175million (£136.2million) annually, starting from 2026-27.
However, the group also anticipates redundancy payments and related expenses to cost between $250 million (£194.5million) and $375 million (£291.8million). This follows last year’s announcement of a plan to restructure its delivery networks and save $4billion (£3.1billion) in costs by the end of 2024-2025, including $1.8billion (£1.4billion) in the year to the end of May 2024.
In March, FedEx disclosed that its workforce had decreased by nearly 22,000 last year due to job losses and staff turnover. The company stated that the latest cost-cutting measures would result in some roles being eliminated and teams merged 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”.
However, it emphasised that these cuts will not affect 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 been a key player in Europe since its arrival in 1984. The company’s European operations are run from its headquarters in Hoofddorp, Netherlands, with major hubs located in Paris and Belgium.
Karen Reddington, president of FedEx Europe, commented: “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.”