More shaking at FedEx (NYSE:FDX). The courier giant is planning to cut between 1,700 and 2,000 back-office jobs in Europe, it said in a filing on Wednesday, as the parcel delivery company struggles with weak freight demand.
The cuts will be carried over an 18-month period, the company said, adding that it was expecting a pretax cost of $250 million to $375 million related to legal fees and severance benefits.
FedEx expects the job cuts to help save between $125 million and $175 million on an annualized basis beginning in fiscal 2027.
With freight demand still soft and margin improvement still slow in the air-based Express unit, its largest segment, the company has embarked on a cost-cutting drive.
The Memphis-based firm is on track to cut $4 billion in permanent costs by the end of its 2025 financial year.
Earlier this week, FedEx announced it had approved an increase in the annual dividend rate on FedEx Corp. common stock of 10%, or $0.48 per share, to $5.52 per share for fiscal 2025 in line with the company’s continued focus on delivering stockholder value. The Board today also declared a quarterly cash dividend of $1.38 per share on FedEx Corp. common stock.
FDX shares began Wednesday down $1.14 to $251.29.
