DSV Panalpina confirms thousands of jobs to go as integration continues
24 / 02 / 2020
Freight forwarder DSV has confirmed to Air Cargo News reports that suggest thousands of jobs will be cut as a result of the integration of Panalpina.
A spokesperson confirmed a Wall Street Journal article that stated headcount would be reduced by between 3,000 to 4,000 during the integration of the two companies.
He also pointed out that these figures had been previously communicated.
Most of the reduction is expected to come from the air and sea parts of the business, given that both companies had a strong presence in these markets.
The job losses are down to a duplication of roles and office locations, he added.
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When DSV completed the SFr5.4bn takeover of Panalpina in August last year, the two companies stated the combined entity would have a workforce of around 60,000 people, with a presence in 90 countries.
Based on these figures, the losses account for as much as 6.6% of the total workforce.
DSV expects to achieve annual cost synergies of around DKK 2.3bn following the integration.
The cost synergies are expected to have full-year effect by 2022 and will primarily be derived from the consolidation of operations, logistics facilities, administration and IT infrastructure.
In 2019, the combined DSV Panalpina Group saw total revenues increase 19.8% year on year to DKr94.7bn, earnings before interest and tax (ebit) improved by 22.1% to Dkr6.6bn but profits slipped 7% to DKr3.7bn. This is compared with DSV’s results in 2018.