FedEx to cut jobs and integrate TNT air network in Europe

Express firm FedEx plans to cut jobs in Europe and combine air networks as part of the integration of TNT.

The US logistics giant acquired TNT for €4.4bn in 2016 as part of its European expansion plans and has been integrating IT systems and air, road and ground networks since then.

The company will now address the duplication of roles and presented its plans to European employee representatives and team members yesterday.

These proposals will regrettably have a “workforce impact” of between 5,500 to 6,300 people across operational teams and back-office functions, FedEx said.

“In the course of these consultations, the full range of support measures for affected team members will be discussed with works council representatives from across the region,” the company stated in a press release.

“These measures differ by country and may include voluntary redundancy, reassignment to other roles and priority access to open positions.

“The consultation process will take place over an eighteen-month period in line with local country processes and regulations.”

The proposals involve the integration of the FedEx Express and TNT air networks.

FedEx Express currently operates two duplicate air networks out of two main hubs in Roissy-Charles de Gaulle Airport in France and Liège Airport in Belgium.

Under the plans, FedEx Express will establish “a dual-hub model in Europe”, with the FedEx Roissy-Charles de Gaulle hub serving as a primary hub, linking all European flight points and connecting European customers to the rest of the world.

The Liège air hub will operate as a secondary hub, providing “flexibility and continuing to provide excellent service to customers year-round”.

“FedEx Express’s dual hub network in the US has been proven over decades with Memphis as the universal hub and Indianapolis as the secondary hub as will be the case with Liège in central Europe,” the company explained.

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FedEx Express Europe president Karen Reddington said: “We acquired the TNT business in 2016 for one reason: to open up the world for our customers by connecting the global FedEx air network with TNT’s extensive European road network to become a top tier player in Europe.

“This process, whilst difficult, will allow us together with the completion of the network integration to operate as one company offering greater coverage, speed of delivery, extended operational capabilities and enhanced service levels

“Changes like this are never easy because they impact our people. However, they are crucial to unlocking the benefits of integration and enhancing our competitiveness in a fast-changing marketplace.

“None of this changes our values as a company and we are committed to an open dialogue, working closely with our social partners and completing this process with the utmost care and respect for our affected team members.”

FedEx Express Europe chief operating officer Dave Canavan said: “Moving towards a dual-hub model is a strategic advantage for us: improving the competitiveness of our Express business, providing us flexibility, and enhancing our growth opportunities.

“We understand that while these intended changes are absolutely necessary to put us on the right path, our team members, particularly in Liège, will be concerned about the future. We will do everything we can to conduct these consultations constructively, with a mindset of collaboration and care for those impacted.”