FedEx Corp. (NYSE: FDX) has announced plans to streamline its workforce in Europe, with proposals to reduce headcount across back-office and commercial teams by 1,700 to 2,000. This move is part of ongoing measures to reduce structural costs and align with changing market dynamics.
The changes in Europe will involve removing positions and consolidating teams in affected back-office and commercial functions. Additionally, certain activities across the region will be consolidated to select shared activity centers in countries best aligned with FedEx's needs and existing real estate footprint.
These changes, however, will not impact FedEx customers and the service they can expect. Richard W. Smith, Chief Operating Officer, International and Chief Executive Officer, Airline, Federal Express Corp., emphasized the importance of these actions in optimizing networks and reducing structural costs while maintaining outstanding service to customers.
In terms of figures, FedEx Corp. reported annual revenue of $88 billion and boasts a workforce of more than 500,000 employees. The company is committed to achieving carbon-neutral operations by 2040.
The consultation process will be conducted at the country level in line with European and local labor laws, with differing timelines across the region. Karen Reddington, President of FedEx Europe, noted that the company will provide maximum support to affected team members and engage in close consultation with social partners during this process.
The proposed workforce reductions in Europe reflect FedEx's strategic efforts to adapt to market changes and enhance operational efficiency. As a result of these announcements, the company's shares have moved -1.5% on the market, and are now trading at a price of $248.6. For the full picture, make sure to review FedEx's 8-K report.
