DSV Panalpina warns of job cuts during restructure

DSV Panalpina Group has announced the possibility of job cuts as it relocates the former Panalpina headquarters (in Basel) to its headquarters in Denmark.

The company said it is finalising its analysis of the impact on corporate functions at the former Panalpina headquarters but warned the relocation could result in up to 165 job losses, despite its intention to expand its logistical footprint in the Basel area.

Jens Bjørn Andersen, chief executive, DSV Panalpina, explained: “As we integrate Panalpina into the DSV Panalpina Group, we recognise that there are substantial duplications of corporate functions.

“We are also seeing considerable overlaps in the IT department, as IT systems that will no longer be used in the combined group are phased out. As a result, we are considering several restructuring measures.

“According to our analysis, we will not be able to avoid job cuts and the relocation of positions to DSV Panalpina’s headquarters in Denmark.”

DSV Panalpina expects to retain approximately 50% of Panalpina’s current head office workforce following completion of the restructuring by the end of the second quarter 2020.

Retained functions will include: critical positions in sales, operations, IT and innovation.

Speaking to employees at the former Panalpina headquarters last week, Group chief financial officer Jens Lund reinforced the company’s commitment to do all that it can, within its reasonable control, to find appropriate solutions for everybody affected.

Lund also underlined DSV Panalpina’s interest in retaining a commercial and operational presence at its Basel office and in expanding its logistical footprint in the Basel area by consolidating suitable operational activities in Switzerland.