FedEx (FDX.US) plans to cut 1,700 to 2,000 logistics positions in Europe to reduce costs and respond to the decline in freight demand.

The company stated that it will complete the layoffs within 18 months, generating pre-tax costs of 250 to 375 million US dollars, including legal fees and compensation expenses. The company expects to save costs of 125 to 175 million US dollars in the 2027 fiscal year from job cuts.

The company plans to cut $4 billion in costs by the end of the 2025 fiscal year, including $1.8 billion in cost reductions in fiscal year 2024, to restructure its delivery network and tighten cargo capacity. The company currently provides services in over 45 countries and regions in Europe, employing more than 52,000 employees locally.