American multinational delivery services company, FedEx Express has announced plans to lay off between 5,500 and 6,300 employees in Europe, as it nears the completion of the network integration of its TNT Express unit.
FedEx acquired European operator TNT Express, which specializes in shipments between businesses, in 2016 as part of its plan to expand in Europe. Now, the company says that this duplication from two European networks connecting similar geographies has resulted in job cuts across operational teams and back-office functions.
According to the company, the job cuts are expected to result in savings of between $275 million and $350 million on an annual basis beginning in fiscal year 2024, adding that it expects to incur severance charges of between $300 million and $575 million through fiscal 2023.
FedEx Corporation is an American multinational delivery services company, with headquarters in Memphis, Tennessee. It uses a global air-and-ground network to speed delivery of time-sensitive shipments. It has the largest air cargo fleet of the big three delivery companies, with more than 650 aircraft.