07:59 AM EDT, 06/12/2024 (MT Newswires) -- FedEx ( FDX ) said on Wednesday it would reduce headcount across back-office and commercial teams in Europe by 1,700 to 2,000 as part of its ongoing measures to reduce structural costs.

The company said the move will not affect FedEx ( FDX ) customers and their expected service.

It added that it will execute the plan over 18 months as per local country processes and regulations.

FedEx ( FDX ) expects to incur charges in the range of $250 million to $375 million, which will be spread out through fiscal 2026 and categorized as business optimization expenses, the company said adding that the anticipated savings from the plan are estimated to be between $125 million and $175 million annually, starting fiscal 2027.

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