FedEx announces pending layoffs in Europe

In a Form 8-K filing with the United States Securities Exchange Commission earlier today, Memphis-based global freight transportation and logistics services provider FedEx announced a workforce reduction plan in Europe as part of the company’s ongoing measures to reduce structural costs.

Company officials said that this plan will impact between 1,700-to-2,000 FedEx Europe-based employees serving in back-office and commercial functions.

“FedEx is transforming to best match changing market dynamics and meet the needs of our customers,” said Richard W. Smith, chief operating officer, International and chief executive officer, Airline, Federal Express Corp., in a statement. “Alongside the work we’ve done to optimize 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.”

The Form 8-K filing explained that FedEx expects the pre-tax cost of the severance benefits and legal and professional fees to be provided under and related to the plan to range from $250 million to $375 million in cash expenditures, with these charges expected to be incurred through fiscal 2026 and be classified as business optimization expenses.

“We expect savings from the plan to be between $125 million and $175 million on an annualized basis beginning in fiscal 2027,” said FedEx. “The actual amount and timing of cost savings resulting from the workforce reduction plan are dependent on local country consultation processes and regulations and negotiated social plans and may differ from our current expectations and estimates.”

FedEx stated that the changes in Europe will include removing positions and consolidating teams in the affected back-office and commercial functions. And certain activities performed across the region will also be consolidated to be located in select shared activity centers that are in countries that are best aligned with the company’s needs and the existing FedEx real estate footprint.

“These changes do not affect FedEx customers and the service they can expect,” it said.