In a strategic memo released today, the Dutch delivery group, which was the target of a failed $7 billion takeover by United Parcel Service, has said the cuts, which will affect around six percent of its workforce, will save it around $287 million (€220 million) by 2015.
The company added that it would also be restructuring the business, which it hoped would knock another $195 million (€150 million) by 2015.
The plans fall under the company’s “Deliver” strategy, which aims to help it turn its business around and rake in profits by 2015. Currently the company is failing on the money front, as a result of “challenging trading conditions and continuing price pressure”.
As well as the cuts and restructuring, the company has also said it will focus around reshaping the TNT portfolio through the sale of China and Brazil Domestic and reducing exposure to fixed intercontinental air capacity. It will also look at focusing on TNT Express’ distinctive service proposition and increasing growth in its most profitable segments and invest in infrastructure and in business supporting and customer IT.
Commenting on the Deliver programme, Bernard Bot, interim CEO said the business faced difficult market conditions and strategic challenges. However he pointed out it had a “unique competitive proposition” – an unrivalled European network, worldwide connections, an integrated range of services and recognised dedication to customers.
However, he warned the strategy had to be executed correctly to ensure results.