Express group confirms it will maintain ‘a dual-hub model in Europe’, like in the US, with Liège continuing as a secondary hub to Paris CDG. FedEx Express has unveiled proposals to “resize” its European workforce as it nears the completion of the network integration of TNT, which could lead to more than 6,000 redundancies.
Having finalised the €4.4 billion acquisition of its express distribution peer in May 2016 to combine “the world’s largest air express network with an unparalleled European road network and global suite of services”, plans to “address the duplication resulting from operating two large European networks connecting similar geographies” were presented to European employee representatives and team members today, FedEx said.
“These proposals will regrettably have a workforce impact of between 5,500-6,300 people across operational teams and back-office functions. 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.”
FedEx said these measures would differ by country and may include voluntary redundancy, reassignment to other roles and priority access to open positions, adding: “The consultation process will take place over an eighteen-month period in line with local country processes and regulations.”
Karen Reddington, president of FedEx Express Europe, commented: “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.”
She added: “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.”
Under the plans presented today, FedEx Express would maintain “a dual-hub model in Europe”, with the FedEx Paris-Charles de Gaulle hub serving as a primary hub, “universally linking all European flight points and connecting European customers to the rest of the world”. The Liège air hub in Belgium, acquired during the purchase of TNT, would continue to operate as a secondary hub, “providing flexibility and continuing to provide excellent service to customers year-round”.
FedEx added: “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.”
Source: Lloyd´s
