FedEx Plans Up To 2,000 Job Cuts To Slash Costs In Europe Shakeup
Portfolio Pulse from Shivani Kumaresan
FedEx Corp. (NYSE:FDX) plans to cut up to 2,000 jobs in Europe to reduce costs, expecting annual savings of $125-$175 million starting in fiscal 2027. The restructuring will incur pre-tax costs of $250-$375 million through fiscal 2026. Additionally, FedEx's Board approved a 10% increase in the annual dividend rate to $5.52 per share for fiscal 2025.
June 12, 2024 | 1:04 pm
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FedEx plans to cut up to 2,000 jobs in Europe to streamline operations and reduce costs, expecting annual savings of $125-$175 million starting in fiscal 2027. The restructuring will incur pre-tax costs of $250-$375 million through fiscal 2026. Additionally, the Board approved a 10% increase in the annual dividend rate to $5.52 per share for fiscal 2025.
The job cuts and restructuring are likely to improve FedEx's operational efficiency and reduce costs in the long term, which is positive for the stock. The 10% dividend increase also signals confidence in the company's financial health, further boosting investor sentiment.
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