FedEx $FDX is looking to lay off thousands of workers across its back-office and commercial teams in Europe, the delivery giant said in a statement on Wednesday.
The delivery giant said it is struggling with weaker freight demand
FedEx $FDX is looking to lay off thousands of workers across its back-office and commercial teams in Europe, the delivery giant said in a statement on Wednesday.
The Memphis, Tennessee-based company said it is cutting jobs and consolidating some teams to streamline its workforce and reduce structural costs. FedEx anticipates it will lay off 1,700 to 2,000 employees, reportedly costing the company between $250 million and $375 million through the 2026 fiscal year.
The delivery company’s announcement follows a significant decline in global shipping demand, as many consumers, once forced to shop online due to the Covid-19 lockdowns, return to buying in-person.
FedEx has been looking to cut down costs, including by reducing payroll, restructuring its ground and express operations, cutting senior positions, and even closing down some facilities.
The freight company claims the layoffs won’t impact its services. Employees who are being laid off will be contacted on a rolling basis, FedEx noted, adding that there are differing timelines for each country.
“We will conduct this process with the maximum support for those affected and in close consultation with our social partners,” said Karen Reddington, FedEx Europe’s president, in a statement.
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