Federal Express Corp., a subsidiary of FedEx Corp. (FDX) announced Wednesday a workforce reduction plan in Europe as part of its ongoing measures to reduce structural costs.
The execution of the plan is subject to a consultation process that is expected to occur over an 18-month period in accordance with local country processes and regulations. The plan will impact between 1,700 and 2,000 employees in Europe across back-office and commercial functions.
The company said it expects the pre-tax cost of the severance benefits and legal and professional fees to be provided under and related to the plan to range from $250 million to $375 million in cash expenditures to be incurred through fiscal 2026 and will be classified as business optimization expenses.
The company expects savings from the plan to be between $125 million and $175 million on an annualized basis beginning in fiscal 2027.