fbpx
Friday, March 5th, 2021
A plane of FedEx Express carrying a first batch of Pfizer/BioNTEch COVID-19 vaccine is seen at LAX Airport
FILE PHOTO: A plane of FedEx Express carrying a first batch of Pfizer/BioNTEch COVID-19 vaccine is seen at LAX Airport, following the outbreak of the coronavirus disease (COVID-19), in Los Angeles, California, U.S., December 13, 2020, in this photo obtained from social media. Los Angeles World Airports/via REUTERS
Home » Supply Chain » FedEx Express unveils plan to lay off up to 6,300 employees in Europe

FedEx Express unveils plan to lay off up to 6,300 employees in Europe

REUTERS, JANUARY 19, 2021

Reuters LOGO

(Reuters) – FedEx Corp’s express unit on Tuesday announced a plan 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.

Shares of the package delivery firm were up about 1% at $254.76 in morning trade.

FedEx acquired European operator TNT Express, which specializes in shipments between businesses, in 2016 as part of its plan to expand in Europe.

The duplication from two European networks connecting similar geographies will result in job cuts across operational teams and back-office functions, the company said.

Weak shipment sales in Europe over the past few years have led to sluggish growth in the TNT unit and weighed on FedEx’s results.

The plan is expected to result in savings of between $275 million and $350 million on an annual basis beginning in fiscal 2024, FedEx said, adding that it expects to incur severance charges of between $300 million and $575 million through fiscal 2023.

FedEx Express uses a global air-and-ground network to speed delivery of time-sensitive shipments.

Reporting by Sanjana Shivdas and Ankit Ajmera in Bengaluru; Editing by Maju Samuel

Check Also

Man swimming with kitten on shoulder

Thai navy rescues four abandoned kittens from sinking ship (PHOTOS & VIDEO)

REUTERS, MARCH 3, 2021 BANGKOK, March 3 (Reuters) – Thai navy sailors braved choppy waters …

Ships and shipping containers are pictured at the port of Long Beach

Prices lurch higher as Home Depot, other importers battle surging cargo, commodity costs

REUTERS, FEBRUARY 23, 2021 (Reuters) – As Home Depot heads into its busy spring project …