Europe: FedEx to cut up to 2,000 jobs to reduce costs
The workforce reduction of the American courier company will mainly affect administrative and commercial positions.
(Cordon Press)
(AFP / VOZ MEDIA) FedEx will eliminate up to 2,000 jobs at its headquarters in Europe as part of a cost-cutting campaign in the face of declining demand for its services, the American company announced on Wednesday.
The logistics, transportation and courier company based in the state of Tennessee reported that the layoffs will be made in both administrative and commercial positions:
Its plan is to eliminate between 1,700 and 2,000 positions "subject to local laws and prior consultation processes." The process will be developed country by country "with different schedules throughout the region."
"We are taking steps to streamline many of our functions and reduce structural costs while continuing to provide excellent service to our customers," said Richard Smith, chief operating officer of FedEx's international division.
"We do not make these decisions lightly, but they are essential to putting FedEx on the right path for the future," Smith said.
The job cuts come as FedEx doubles down on its efforts to reduce expenses and size following its most recent balance sheet.
Fedex CEO Rajesh Subramaniam said in March that the company expects to execute $1.8 billion in permanent cost cuts in fiscal year 2024 and another $2.2 billion in fiscal year 2025.
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