MIAMI – Air cargo specialist FedEx (FX) plans to cut a large number of workers at its European division, putting between 5500 and 6300 jobs at risk.
FedEx, which employs 340,000 people and carries 11.5 million parcels per day, plans to restructure its European FedEx Express division in a move that may seem a paradox when you look at the rise in cargo operations.
Why the Restructure Move Now?
The air cargo business, according to IATA, has grown by 14,9%, notwithstanding or thanks to the COVID-19 pandemic, and FX Express is a big winner thanks to the growth of e-commerce.
However, Mohammed Hjiaj, a union representative at FX, has commented, ” One must be realistic: this decision stems from the purchase of TNT ” which FedEx acquired in 2016. TNT, a parcel carrier from Holland, employs 56000 workers and delivers 1ml parcel per day.
On her part, Karen Reddington, President FedEx Europe, qualified this evolution as “essential to take full advantage of this acquisition to reinforce our competitiveness in a market rapidly evolving” while pointing out that “this is not easy as salaries are impacted.” Furloughs may concern areas in marketing, financial services, human resources, and customer services.
Featured image: Nick Sheeder/Airways