FedEx to cut workforce as it nears completion of TNT integration

FedEx plans to reduce its European workforce between 5,500-6,300 people as it completes integration of TNT Express, which it acquired in 2016.

A consultation process is underway with employee representatives and team members, discussing the various options for job reassignment or voluntary redundancy.

The need for the cut seems mainly due to the overlap between the two delivery networks in Europe, leading to unnecessary duplication.

In the last couple of years, FedEx has used TNT’s existing network to bolster its European offerings, improving efficiency and reducing transit times for both brands.

However, it’s been a slow road to integration. TNT Express was hit by the NotPetya cyberattack in 2017, which took down its computer systems and caused ongoing problems, and FedEx has continually reported the impact of European operations on its bottom line.

FedEx also proposes establishing a dual-hub system in Europe to replace its existing air networks. Roissy-Charles de Gaulle Airport in France would serve as its primary hub, connecting its Europe network to the rest of the world, while Liège Airport in Belgium would serve as its secondary hub, allowing for more flexible operations.

Source: Post & Parcel

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