Swiss shipping giant Kuehne + Nagel to cut 20,000 jobs as pandemic scorches demand

by   |  VIEW 1681

Swiss shipping giant Kuehne + Nagel to cut 20,000 jobs as pandemic scorches demand

In the face of an unfathomable demand crunch of a swathe of activities ranging from retails to services to industries, Swiss Freight-forwarder Kuehne + Nagel International AG’s controlling stakeholder Klaus-Michael Kuehne said in an interview with a German newspaper on Saturday that the company would likely to trim more than 20,000 jobs adding that the warehouse workers would bear the heaviest brunt, since the pandemic hobble appeared to be inflicting deeper wound in to the shipping industry.

Apart from that, the German newspaper Die Welt report was also quoted Kuehne as saying that the Schindellegi-based Swiss multinational transport and logistic company, Kuehne + Nagel International AG, employing over 83,000 people across the globe, would be downsizing its workforces by roughly 25 per cent in high-value locations such as the United States where the Labour Department unlike some EU nations, does not have a system to put full-time workers on to a short-time payroll to avert en masse layoffs.

Besides, referring to the growing uncertainties whirling around the pandemic outbreak, Klaus-Michael Kuehne, the controlling stakeholder of the 130-year-old Swiss shipping Goliath alongside a board member of Kuehne Holding AG, the owner of Kuehne + Nagel, had also added told to the German Newspaper that the 2020 earnings and revenues of the Swiss multinational logistic company would be calamitous compared to a year earlier.

Pandemic scorches shipping demand as Kuehne + Nagel to become smaller after pandemic, warns Kuehne

Meanwhile, addressing to a rising trend towards regionalization alongside a slowdown of globalization, which in effect has been adding further strains on to shipping demands, Kuehne said in the Die Welt interview, “The group could have 20-25% fewer workers than before the crisis.

We will emerge from the crisis smaller. The moments of truth come in the April to June period. Transport volumes have declined significantly. The decisive question is, will the world economy begin a gradual recovery in June.