FedEx Subsidiary Proposes to Lay Off 5,500 to 6,300 People in Europe

By Dave Sebastian

FedEx Express said it has entered consultations to reduce its European workforce as it completes the network integration of TNT, affecting 5,500 to 6,300 people across operations and back-office functions.

The FedEx Corp. subsidiary said it has presented its plan, which seeks to address the overlap resulting from operating two European networks connecting similar geographies, to European employee representatives Tuesday. FedEx bought TNT, a Dutch package-delivery company, in 2016.

The company said it seeks to establish a dual-hub model in Europe, with the FedEx Roissy-Charles de Gaulle hub serving as a primary hub and the Liege location operating as a secondary hub. FedEx sees those two hubs, at the Paris Charles de Gaulle Airport and Liege Airport in Belgium, as duplicate air networks.

"Moving towards a dual-hub model is a strategic advantage for us: improving the competitiveness of our Express business, providing us flexibility, and enhancing our growth opportunities," said Dave Canavan, operating chief of FedEx Express Europe.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

January 19, 2021 09:51 ET (14:51 GMT)

FedEx (NYSE:FDX)
Historical Stock Chart
From Mar 2024 to Apr 2024