FedEx UK: package and parcel delivery giant jobs at risk as company announces cost-cutting redundancies

• FedEx in Europe plans to cut up to 2,000 jobs to reduce costs
• The restructuring aims to save $125-175 million annually, but will cost $250-375 million in redundancies
• Thousands of UK employees may face job losses or role changes
• The company assures customers that services won't be affected
• Employees affected by the cuts should understand their rights and seek support

FedEx in Europe is set to reduce its workforce by up to 2,000 jobs as part of a cost-cutting strategy.

The parcel delivery giant, based in Memphis, Tennessee, plans to trim its European back-office and commercial staff by 1,700 to 2,000 positions over the next 18 months.

With nearly 50,000 employees across Europe, the company hopes the move will save between $125 million and $175 million (£98 million and £137 million) annually, starting from 2026-27.

But the restructuring will come with a hefty price tag for the company, costing between $250 million and $375 million (£195 million and £293 million) in redundancy payments and associated expenses.

FedEx employs thousands of people in the UK across various roles, including delivery drivers, warehouse staff, administrative staff, and more.

The latest restructuring will involve job cuts, team mergers - primarily in back-office and commercial operations - while “certain activities performed across the region will also be consolidated to be located in select shared activity centres”.

While the specific impact on UK employees hasn't been outlined by the company, employees in the UK may face redundancy or a restructuring of their roles, potentially leading to job losses or changes in responsibilities.

The company is keen to assure customers that these changes are not expected to affect its delivery services.

The latest round of cuts follows FedEx's previous announcement that it would be restructuring its delivery networks to save $4 billion (£3.1 billion) in costs by 2024-2025, including $1.8 billion (£1.4 billion) in savings by May 2024.

What has FedEx said?

FedEx, which has had a presence in Europe since 1984, operates from its divisional headquarters in Hoofddorp, the Netherlands, with main hubs in Paris and Belgium.

Last year alone, it saw its workforce shrink by nearly 22,000 due to layoffs and staff turnover.

Richard Smith, FedEx International's chief operating officer, emphasised the importance of these decisions in reducing structural costs while maintaining service quality.

He said: “Alongside the work we’ve done to optimise our networks, we’re taking necessary actions to streamline many of our functions to reduce structural costs while continuing to deliver outstanding service to our customers.

“We do not take these decisions lightly, but they are essential to putting FedEx on the right path for the future.”

What can I do?

If you're affected by the job cuts at FedEx or are worried about facing redundancy, there are some steps you can take.

Familiarise yourself with your employment contract, rights and entitlements regarding redundancy, notice periods and any severance packages, and reach out to your HR department or relevant management to understand how the changes will affect you personally.

They can provide information on your options, support available and the timeline for the redundancy process.

Karen Reddington, president of FedEx Europe, acknowledged the challenges the latest changes pose, and pledged maximum support for affected employees and their families.

“We have in the front of our minds our affected team members and their families,” she said. “In line with our culture, we will conduct this process with the maximum support for those affected and in close consultation with our social partners.”

If you're entitled to redundancy pay, seek financial advice on how best to manage your finances during the transition period, but try to stay positive and focus on your skills and abilities.

Facing redundancy can be challenging, so reach out to friends, family or support groups if you're feeling overwhelmed.