MEMPHIS, Tenn. (AP) – FedEx plans to cut up to 6,300 jobs in Europe as it completes the process of folding a Dutch company it bought into its own delivery operation.
Memphis, Tennessee-based FedEx said severance payments will cost between $300 million and $575 million through 2023, but that the job cuts will save the company between $275 million and $350 million a year beginning in 2024.
The president of FedEx’s European express-delivery operation, Karen Reddington, said in a statement that the job cuts are crucial to make the company more competitive in a changing market.
FedEx plans to downgrade an air-service hub in Liege, Belgium, to make Paris its sole primary hub. The company compared that set-up to its U.S. operation, where Memphis is the main hub and Indianapolis serves a secondary role.
In buying TNT, FedEx succeeded where U.S. rival United Parcel Service had failed – European regulators blocked a UPS attempt to buy the company in 2013, arguing that a UPS-TNT combination would face inadequate competition on some routes and lead to higher prices.
Europe was in the midst of an economic slowdown. Then TNT’s computer systems became infected during a worldwide cyberattack called NotPetya, causing FedEx to take a $300 million charge against earnings in 2017.
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