FedEx Corp. is planning to cut as many as 6,300 jobs in Europe as the courier completes the process of integrating its TNT Express unit.
Plans to address the duplication from operating two large delivery networks have been presented to European employee representatives, FedEx said in a regulatory filing Tuesday. The company expects the cuts to generate a pretax cost of US$300 million to US$575 million from severance benefits as it merges the TNT air network with FedEx’s overnight Express operation.
“This process, whilst difficult, will allow us together with the completion of the network integration to operate as one company,” Karen Reddington, president of FedEx Express Europe, said in the filing. That will enable FedEx to offer “greater coverage, speed of delivery, extended operational capabilities and enhanced service levels.”
With the integration, FedEx is trying to reap the rewards of its 2016 acquisition of TNT. While FedEx saw the deal as spearheading its European expansion, combining the operations has proven difficult and more expensive than originally estimated -- especially after a cybersecurity attack in 2017 crippled several companies including TNT.
FedEx climbed less than 1 per cent to US$254.55 at 9:47 a.m. in New York.
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