FedEx has announced plans to restructure its operations in France, with up to 500 job cuts and the closure of 17 stations..
“A bold operational transformation plan to secure long-term competitiveness”, is how the US express integrator described the move, which comes with a commitment to invest €78m in new infrastructure and technology in one of FedEx’s largest markets in Europe.
However, the restructure does not extend to its international air network, which focuses on its Paris-CDG Airport hub.
FedEx will begin a formal consultation over the proposals with social partners, in accordance with local labour law, to establish “fair and appropriate” accompanying measures.
The group explained that the French courier and express transportation market was dominated by a highly competitive and cost-pressurised domestic parcels sector. FedEx’s response is to redesign its ground operations network and eliminate overlapping infrastructure, modernise its technology and infrastructure footprint, and align its commercial strategy towards more international growth to and from France.
It said: “As a result, the FedEx station footprint will be scaled down from 103 to 86 stations. In doing so, FedEx may reduce up to 500 operational positions and change working locations and schedules for up to 800 operational team members.”
Additionally, there is the potential creation of more than 770 new full and part-time positions following the operations network redesign and technological enhancements, with affected employees given priority for these roles.
FedEx is also modernising its technology landscape, with the rollout of an innovative new platform to optimise pickup and delivery operations.
As recently as October, FedEx increased its air capacity from China (ex-Guangzhou and Shanghai) to Europe by adding five weekly 777F flights to its Paris-CDG hub.
The restructuring of its operations in France follows FedEx’s announcement this month of the closure of its large-scale, domestic operation in Brazil in favour of a tighter focus on its more profitable international express services to and from Latin America’s largest country.
It currently operates four weekly 767-300 freighter flights between Memphis and Sao Paulo.
FedEx Brazil comprises a domestic network of 10 hubs and 50 branches, a road fleet of 2,400 vehicles, and an estimated 8,000-strong workforce serving more than 5,300 destinations nationwide.
The integrator has a long-standing presence in the country, but has faced strong competition from local companies which has led to it restructuring, notably reducing the workforce.
It has also been confronted with significant operational challenges in Brazil, with regard to the vast distances its network has to cover, and poor infrastructure.
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