FedEx announced in mid-June 2024 its intention to reduce its European workforce by 1,700-2,000 positions, targeting back-office and commercial roles. The aim is to "adapt to changing market dynamics." The company plans to cut between 1,700 and 2,000 jobs in Europe. These reductions will primarily affect back-office and commercial activities, sparing logistics and transportation operations. The goal is to "reduce structural costs" to "adapt to the changing market dynamics." There is currently no information on the geographical distribution of these job cuts. The company assures that the quality of service will not be affected.
Reuters reports that the staff reduction process will last eighteen months. Economically, the operation will incur costs estimated between $250 million and $375 million, covering legal expenses and severance packages. However, Reuters notes that by the end of the downsizing, the company will save between $125 million and $175 million annually, starting from 2027.
This will be the most significant move by the U.S. multinational since integrating TNT, a process completed in 2022. During this integration, FedEx relocated some activities from TNT's hub in Liège to its European hub at Paris Charles de Gaulle Airport. However, even Paris is now facing challenges due to geopolitical situations. In Europe, FedEx employs approximately 50,000 people, operating across a network of seventy airports and 540 logistics platforms.
