 "TNT Express to shed 4,000 jobs after UPS takeover fails")
Dutch post and courier company TNT Express said today it would shed around 4,000 jobs over the next three years as it restructures after the failure of a takeover bid by US rival UPS.
The company will also introduce a new management structure, sell its operations in China and Brazil and reduce its air capacity, resulting in around 150 million euros ($195 million) in costs and 220 million euros in annual savings by the end of 2015, a statement said.
The announcement came after rival United Parcel Service (UPS) in January abandoned its bid for TNT Express that would have created the biggest European group in the fight for the global parcel market.
"We are... Taking immediate steps to reshape our portfolio, make the company leaner and pursue efficiencies in operational and supporting processes," Bot said.
The company said it was exploring options to reduce its exposure to intercontinental capacity.
"Options include capacity-sharing agreements, subleases and lease terminations," it said.
The company has already started to divest its domestic operations in China and Brazil.
"The sales process for domestic China is well underway and the outcome should be known imminently. Preparations for the sale of Brazil Domestic have started," it said.
TNT Express's Brazilian operations have been making losses for years.
It will introduce a new management structure as well as shedding the 4,000 jobs and would consult with employees, work councils and unions over the consequences and "best possible solutions".
"Two thirds of the job losses will be in Europe," TNT Express spokesman Cyrille Gibot told AFP. "We were late in restructuring, that's why we have to act now."
When the UPS takeover bid failed, TNT Express immediately lost nearly two billion euros in capitalisation, despite UPS paying TNT a cancellation fee of 200 million euros.
Both bidder and target had worked hard to get the deal past EU competition authorities, but UPS withdrew when it became clear anti-trust officials were set on blocking the deal.
The EU said it was worried the proposed merger would reduce the number of competitors from four to three and lead to a highly concentrated market for domestic and international express delivery services on the European continent.
The deal was expected to put UPS ahead of its two competitors as it would strengthen its position in Europe and globally.
"Unfortunately all this business with UPS has been a waste of time for TNT Express," Jos Versteeg, analyst with Dutch bank Theodoor Gilissen, told AFP.
"Today's announcement doesn't surprise me, they had to do something because the markets aren't going as well as they were," he said. "The European market is extremely competitive compared to the US market."
UPS and TNT Express are major players in the sector for delivery of packages and are two of four firms with a comprehensive air and road delivery network on the continent.
The company will also introduce a new management structure, sell its operations in China and Brazil and reduce its air capacity, resulting in around 150 million euros ($195 million) in costs and 220 million euros in annual savings by the end of 2015, a statement said.
The announcement came after rival United Parcel Service (UPS) in January abandoned its bid for TNT Express that would have created the biggest European group in the fight for the global parcel market.
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"Our business faces difficult market conditions and strategic challenges," TNT Express interim CEO Bernard Bot was quoted as saying.
"We are... Taking immediate steps to reshape our portfolio, make the company leaner and pursue efficiencies in operational and supporting processes," Bot said.
The company said it was exploring options to reduce its exposure to intercontinental capacity.
"Options include capacity-sharing agreements, subleases and lease terminations," it said.
The company has already started to divest its domestic operations in China and Brazil.
"The sales process for domestic China is well underway and the outcome should be known imminently. Preparations for the sale of Brazil Domestic have started," it said.
TNT Express's Brazilian operations have been making losses for years.
It will introduce a new management structure as well as shedding the 4,000 jobs and would consult with employees, work councils and unions over the consequences and "best possible solutions".
"Two thirds of the job losses will be in Europe," TNT Express spokesman Cyrille Gibot told AFP. "We were late in restructuring, that's why we have to act now."
When the UPS takeover bid failed, TNT Express immediately lost nearly two billion euros in capitalisation, despite UPS paying TNT a cancellation fee of 200 million euros.
Both bidder and target had worked hard to get the deal past EU competition authorities, but UPS withdrew when it became clear anti-trust officials were set on blocking the deal.
The EU said it was worried the proposed merger would reduce the number of competitors from four to three and lead to a highly concentrated market for domestic and international express delivery services on the European continent.
The deal was expected to put UPS ahead of its two competitors as it would strengthen its position in Europe and globally.
"Unfortunately all this business with UPS has been a waste of time for TNT Express," Jos Versteeg, analyst with Dutch bank Theodoor Gilissen, told AFP.
"Today's announcement doesn't surprise me, they had to do something because the markets aren't going as well as they were," he said. "The European market is extremely competitive compared to the US market."
UPS and TNT Express are major players in the sector for delivery of packages and are two of four firms with a comprehensive air and road delivery network on the continent.