DSV Panalpina plans to significantly reduce the number of positions at the company – by 3 to 4 thousand. This is not good news for DSV Panalpina employees.
DSV Panalpina will dismiss 3-4 thousand employees, mainly workers of the IT infrastructure, administration and logistics departments – said DSV Chief Financial Officer Jens Lund to the Wall Street Journal. DSV that acquired the Swiss logistics company Panalpina Welttransport Holding last year employs 60,000 people in 90 countries around the world.
According to Lund, DSV wants to increase efficiency with this measure. Panalpina had a small profit margin, but was generally not competitive. DSV Panalpina hopes that the consolidation of operations, logistics facilities, administration and information technology will bring about 2.3 billion Danish crowns in the coming years.
Lund said integration, which mainly concerns air and sea freight, should be completed in 2020.
Then we can basically focus on normal operations from 2021. ” – he noted.
After the last major takeover (UTI Worldwide) in 2016, DSV reduced staff by 3,000. employees.
Last year, DSV Panalpina recorded a 19.8 percent increase in turnover. from 79 billion Danish crowns to 94.7 billion Danish crowns.
Around DKK 13.4 billion of turnover accounted for the increase resulting from the acquisition of Panalpina, while organic growth was 2 percent. In turn, EBIT increased by 22.1 percent (to the mentioned 6.6 billion Danish crowns).
Last year, the logistics giant recorded a gross profit of 23.7 billion Danish crowns, or 35 percent more than a year ago.