FedEx (NYSE:FDX) layoffs are coming for employees in Europe as weak demand has the delivery company cutting thousands of jobs overseas.
FedEx will cut between 1,700 and 2,000 jobs in Europe. The company is mostly focusing on back-office jobs, with the cuts estimated to save between $125 million and $175 million annually starting in fiscal 2027.
FedEx expects the layoffs to take place over the next 18 months. It is also looking at expenses of $250 million to $375 million related to these headcount reductions. This is part of its larger plan to cut $4 billion in operating costs by the end of 2025.
Here’s what FedEx said about the layoffs to CNBC:
“Alongside the work we’ve done to optimize our networks, we’re taking necessary actions to streamline many of our functions to reduce structural costs.”
FedEx Layoffs Follow Trend
FedEx is joining a growing list of companies that are cutting jobs alongside falling demand. This has been affecting several businesses that saw an increase in demand during the pandemic.
This makes sense for FedEx as more people were ordering items online during lockdowns. Since then, lockdowns have ended and there are not as many people exclusively ordering products through e-commerce platforms.
FDX stock is up slightly as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
