FedEx Corporation (NYSE:FDX) stock fell Friday after the company unveiled a bold operational transformation plan for its French business.

FedEx Corporation said it proposed a sweeping programme to modernise domestic operations and secure competitiveness in France.

FedEx Corporation said the plan includes a major restructuring of its facility footprint and technology upgrades across France.

Strategic Overhaul

The company said the French parcels market has fierce competition and strong cost pressures.

FedEx said it will redesign its ground network, simplify operations and align commercial strategy to boost growth to and from France.

The plan calls for reducing FedEx's domestic station count from 103 to 86 locations.

Under the proposal, the company may cut up to 500 operational jobs while altering roles or schedules for up to 800 team members.

The company also said the transformation could create more than 770 new full- and part-time positions tied to digitised operations.

Investment And Advancements

FedEx confirmed it will invest up to 78 million euros (about $91 million) in upgraded facilities and deployed scanning technologies.

It said the enhancements should improve employee experience and customer service performance.

The company said it will roll out an advanced digital platform to optimise pickup and delivery functions.

The new technology will unify systems, modernise scanning and help improve routes.

Local Impact And Process

FedEx said it will work closely with social partners and follow French labour law throughout consultations.

The company said it will pursue formal discussions with employee representatives on proposed changes.

FDX Price Action: FedEx shares were down 2.14% at $303.18 at the time of publication on Friday, according to Benzinga Pro data.

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