FedEx Corp. said on Wednesday that it is cutting the number of workers in Europe by 1,700 to 2,000 in order to save money and earn up to $175 million a year.
FedEx FDX, -0.51% said it expects the costs of legal and professional fees, as well as severance pay, to range from $250 million to $375 million.
FedEx thought the steps to cut costs would save at least $125 million and possibly as much as $175 million a year starting in fiscal 2027. The money would mostly be saved in back-office and business functions.
In Wednesday morning trades, FedEx’s stock went down 0.5% after going up earlier in the day.
The Memphis-based package delivery giant said that local labour laws will require 18 months of public input on the plan.
When it reports its quarterly results, it will start including charges for the costs of laying off employees. These charges will be made public until fiscal 2026.
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FedEx’s annual report said that as of May 31, 2023, it had 529,000 full-time and part-time employees, with 328,000 full-time workers and 201,000 part-time workers.
