DSV Panalpina cuts 3,000 jobs in pandemic response
DSV Panalpina is cutting 3,000 jobs as part of a cost-cutting exercise sparked by Covid-19. The freight forwarder wants to reduce costs by EUR 190 million annually.
The company’s revenue grew by nearly DKK 7.5 billion to DKK 27.3 billion (EUR 3.7 billion) while gross profit grew by DKK 112 million to DKK 1.5 billion (EUR 210 million). However, net profit took a blow and declined from DKK 963 million to DKK 331 million (EUR 44.4 million). This was not entirely due to the corona crisis. The company estimates that the pandemic has impacted its operating result by DKK 250 million in Q1 2020.
“When this year started, we were really looking forward to demonstrating the strength of the DSV Panalpina combination. The Covid-19 crisis has obviously changed the agenda for everybody and hit our markets in a severe way, but we have been able to continue the integration as planned. All things considered, we delivered satisfactory results in Q1 2020 and our asset-light business model has shown its strength”, says CEO Jens Bjørn Andersen.
He added that the crisis will have a significant impact on DSV Panalpina’s activity levels in the coming months and that the company is, therefore, taking the necessary steps to adapt.
The group does not issue a full-year forecast but emphasizes that it is financially robust and “ready to withstand the turbulence of the global economy”.