More job cuts to come at Kuehne Nagel

SWISS logistics group Kuehne & Nagel has said that it could cut more jobs as the economic crisis continues.

Having already cut 3.5 per cent of jobs from its 54,000 workforce by the end of January, chief executive Reinhard Lange (right) warned that a further five to 10 per cent could be cut throughout 2009 to control costs.

“For the time being there are no indications that the world economy will recover quickly; therefore further volume reductions are expected in all business units,” the group said.

Gross profit for the group has fallen four per cent to CHF1.5 billion.

“While Kuehne & Nagel is certainly not immune to the global recession and is and will suffer contracting volumes in all of its businesses, the company was able to maintain very strong margins in its key businesses in the fourth quarter despite the sharp market deterioration,” Vontobel analyst Michael Foeth said.