RTR: FedEx Express unveils plan to lay off up to 6,300 employees in Europe

19/01/2021

REUTERS reports:

– FedEx Corp’s express unit on Tuesday announced a plan to lay off between 5,500 and 6,300 employees in Europe across operational teams and back-office functions, as it nears the completion of the network integration of its TNT Express unit.

FedEx says in a Form 8-K:

– On January 19, 2021, Federal Express Corporation (“FedEx Express”), a subsidiary of FedEx Corporation (“FedEx”), announced a workforce reduction plan in Europe as it nears the completion of the network integration of TNT Express. A copy of the press release issued by FedEx Express on January 19, 2021 announcing the plan is attached as Exhibit 99.1 and incorporated herein by reference. The execution of the plan is subject to a consultation process that will occur over an 18-month period in accordance with local country processes and regulations. The plan will impact between 5,500 and 6,300 employees in Europe across operational teams and back-office functions.

– We expect the pre-tax cost of the severance benefits to be provided under the plan to range from $300 million to $575 million in cash expenditures. These charges are expected to be incurred through fiscal 2023 and will be classified as business realignment expenses. We expect savings from the plan to be between $275 million and $350 million on an annualized basis beginning in fiscal 2024. The actual amount and timing of cost savings resulting from the workforce reduction plan are dependent on local country consultation processes and regulations and negotiated social plans and may differ from our current expectations and estimates.

SEEKING ALPHA writes:

– FedEx (NYSE:FDX) is proposing to resize its European workforce as it completes the integration of TNT, according to Bloomberg.

– Proposed cuts include 5.5K to 6.3K job reductions across operational teams and back-office functions.

To read the full SA post, please click here.