NOL to slash 1,000 jobs to combat industry downturn
SINGAPORE: Global cargo transport and logistics company Neptune Orient Lines (NOL) is cutting 1,000 jobs worldwide or 9 per cent of its workforce.
The reductions will come mainly from its North American operations, with 50 from its headquarters in Singapore. The Singapore-listed shipper hires about 11,000 people globally.
The company will incur a restructuring cost of US$33 million in its fiscal fourth quarter, with more to come in 2009.
The latest cost-cutting measures mark a second phase of NOL's restructuring exercise.
Last month, NOL said its container shipping business APL will reduce capacity in Asia-Europe trade by about 25 per cent.
This would save the group some US$200 million in costs next year.
NOL also warned that its profit outlook for 2009 appears grim due to an extended downturn expected for the shipping industry.
The shipper said it does not see a recovery from the challenging conditions for quite some time and that the situation could persist for the next few years.
NOL said the market environment has worsened considerably over the past month and that it anticipates further deterioration in trading conditions going forward.
The shipping industry has been hurt by slowing economies in the US and Europe.
Shipments have also been delayed or cancelled due to the global credit crisis which has made it more difficult to insure cargo.
Last month, NOL reported an 82 per cent fall in third-quarter profit to US$35 million.
It also said then that it was expecting an operating loss in the fourth quarter.
- CNA/yb/ir
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Re: NOL to slash 1,000 jobs to combat industry downturn
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