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Jan. 19, 2021, 9:37 a.m. EST

FedEx to cut up to 6,300 jobs in Europe, pay up to $575 million in severance

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By Tomi Kilgore

Shares of FedEx Corp. /zigman2/quotes/203047719/composite FDX -0.95% 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 /zigman2/quotes/210598063/realtime DJT -0.34% has advanced 11.6% and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.46% has gained 10.0%.

/zigman2/quotes/203047719/composite
US : U.S.: NYSE
$ 259.60
-2.49 -0.95%
Volume: 1.40M
March 2, 2021 4:00p
P/E Ratio
17.10
Dividend Yield
1.00%
Market Cap
$69.47 billion
Rev. per Employee
$282,518
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/zigman2/quotes/210598063/realtime
US : Dow Jones Indices
13,571.99
-46.10 -0.34%
Volume: 80.09M
March 2, 2021 5:08p
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
31,391.52
-143.99 -0.46%
Volume: 341.28M
March 2, 2021 5:08p
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