March 3 (Reuters) - Swiss logistics group Kuehne und Nagel reported a 17% drop in its recurring annual operating profit on Tuesday, citing a deterioration of industry conditions due to the challenging
Kuehne+Nagel to cut over 2,000 jobs, weighs impact of Middle East conflict
Kuehne+Nagel Announces Major Job Cuts Amid Challenging Market Conditions
By Danny Callaghan and Marleen Kaesebier
Cost-Savings Programme and Financial Performance
March 3 (Reuters) - Swiss logistics group Kuehne+Nagel said on Tuesday it was cutting more than 2,000 jobs as part of a cost-savings programme implemented in the fourth quarter, after its recurring operating earnings fell 17% in 2025.
The freight forwarder, which targets annual savings of at least 200 million Swiss francs ($254 million), had previously estimated that between 1,000 and 1,500 jobs would need to be cut. The resulting savings are expected to fully ramp up over the course of 2026, it said.
Outlook for 2026
Kuehne+Nagel also forecast flat or lower recurring earnings before interest and taxes of 1.2 billion to 1.4 billion francs for 2026, after worsening market conditions sent last year's profit falling to 1.38 billion francs.
The outlook is yet to be significantly impacted by the escalating conflict in the Middle East, it said.
Middle East Conflict: A Potential Opportunity?
Operational Impact and Customer Guidance
Kuehne+Nagel said on Monday that customers should expect cargo delays and potential equipment shortages as it reroutes shipments around the Strait of Bab el-Mandeb and the closed Strait of Hormuz, which lies between Iran and the United Arab Emirates.
"18% of the (global air) cargo capacity, mainly belly capacity, is not operating as we speak. And we do not know whether it's coming back in the next couple of days or weeks," CEO Stefan Paul told Reuters on Tuesday.
Air and Sea Freight Capacity Concerns
He said during a media call that backlogs in Asia meant that in a week's time there could be insufficient capacity for air freight transportation to the U.S. and Europe.
"But on the sea freight side, the impact (...) on the global supply chain is limited," Paul added in the interview.
However, he warned that if customers were to shift from sea to air freight, it could cause greater issues with mismatched supply and demand. The company is not currently experiencing such a shift.
Potential Benefits and Risks
Kuehne+Nagel, which operates in more than 100 countries, may even benefit from the conflict, as global trade turmoil typically drives higher demand for its consultancy services.
"Complexity normally helps a forwarder to have better results," Paul said, though he also warned the war could impact operating earnings if it continues for more than two weeks.
Industry-Wide Response
On Sunday, European shipping majors Maersk and Hapag-Lloyd suspended transit through the Strait of Hormuz and began once again rerouting vessels around South Africa's Cape of Good Hope.
($1 = 0.7861 Swiss francs)
(Reporting by Danny Callaghan, Marleen Kaesebier and Anastasiia Kozlova in Gdansk; editing by Milla Nissi-Prussak)
