Market Pulse
FedEx to cut up to 6,300 jobs in Europe, pay up to $575 million in severance
Shares of FedEx Corp. (FDX) after the package delivery company said it will cut between 5,500 and 6,300 jobs in Europe as it nears the completion of the network integration of TNT Express. FedEx's stock rose 1.4% in morning trading. The cuts will be across operational teams and back-office functions. FedEx expects to pay severance in the range of $300 million to $575 million in cash as a result of the job cuts, which charged expected to be incurred through fiscal 2023. Annualized savings from the cuts are expected to be between $275 million and $350 million, starting in fiscal 2024. FedEx's stock has dropped 9.2% over the past three months, while the Dow Jones Transportation Average has advanced 11.6% and the Dow Jones Industrial Average has gained 10.0%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 19, 2021 09:36 ET (14:36 GMT)
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