FedEx is planning to cut between 1,700 and 2,000 back-office jobs in Europe, it said in a filing on Wednesday, as the parcel delivery company struggles with weak freight demand.
The cuts will be carried over an 18-month period, the company said, adding that it was expecting a pretax cost of $250 million to $375 million related to legal fees and severance benefits.
FedEx expects the job cuts to help save between $125 million and $175 million on an annualized basis beginning in fiscal 2027.
With freight demand still soft and margin improvement still slow in the air-based Express unit, its largest segment, the company has embarked on a cost-cutting drive.
The Memphis-based firm is on track to cut $4 billion in permanent costs by the end of its 2025 financial year.