FedEx cuts to 6,300 jobs in Europe

The delivery company said in a statement on Tuesday that it would reduce its European workforce by between 5,500 and 6,300 as the integration of TNT Express is completed.

FedEx (FDX) said the cost of the severance benefits could amount to as much as $ 575 million. It expects annual cost savings of between $ 275 million and $ 350 million from 2024.

“This process, while difficult, will enable us to function with the completion of network integration as one company offering greater coverage, delivery speed, expanded operational capabilities and improved service levels,” said Karen Reddington, President of FedEx Express. Europe, said in a statement.

FedEx said job cuts would affect operational teams and office functions. The plan is subject to a consultation process in accordance with local rules and regulations, he added.

FedEx acquired TNT in 2016 by using the Dutch delivery company to significantly expand its road delivery network in Europe.

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