FedEx plans to reduce its European workforce by up to 2,000 employees as part of its ongoing cost-cutting initiatives.
The Memphis-based parcel-delivery giant said it would eliminate between 1,700 and 2,000 positions within its European back-office and commercial teams.
The company aims to consolidate operations in countries that align with its strategic needs and existing real-estate footprint.
This latest round of layoffs at FedEx is driven by a continued slowdown in the shipping industry.
FedEx has been working to cut billions in operating expenses by closing stations and offices, restructuring Ground and Express operations, and reducing its global payroll.
The expected cost of these layoffs is estimated to be between $250 million and $375 million through fiscal 2026.
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The company expects annual savings from the plan to range from $125 million to $175 million starting in fiscal 2027.
According to an annual regulatory filing, as of May 31, 2023, FedEx’s workforce comprised 328,000 full-time workers, 201,000 part-time workers, and nearly 7,000 contractors.
Last year, FedEx announced it would cut 10 percent of its management roles.
FedEx is set to report its fourth-quarter results on June 25.
