TNT's new strategy trims 4,000 jobs
Netherlands-based TNT Express, a few weeks removed from the failed takeover by UPS, has unveiled a strategy it hopes will improve the company’s profitability by 2015. The program, which the company calls “Deliver!,” includes the planned sale of its China and Brazil operations and the reduction of 4,000 jobs over the next three years.
“Our business faces difficult market conditions and strategic challenges but we have a unique competitive proposition: an unrivaled European network, worldwide connections, an integrated range of services and recognized dedication to customers,” said Bernard Bot, interim CEO. “Our updated strategy builds on these strengths.”
TNT said the sales process for the China operation is under way with a deal to come “imminently.” Preparations for the Brazil sale have begun.
The company said it plans to focus on higher-margin services and customer segments. This includes targeting SME and single-source customers, higher-weight parcels and palletized freight express and economy shipments. TNT is targeting €220 million (US$282.8 million) in cost reductions.
TNT Express is also exploring options to reduce its exposure to intercontinental capacity. Options include capacity-sharing agreements, subleases and lease terminations.