TNT Express to shed 4,000 jobs after UPS takeover fails

Dutch post and courier company TNT Express said Monday it would shed around 4,000 jobs over the next three years as it restructures after US rival UPS' takeover bid failed in January, AFP reports. The company will also introduce a new management structure, sell its operations in China and Brazil and reduce its air capacity, resulting in around 150 million euros ($195 million) in costs and 220 million euros in savings by the end of 2015, a statement said. The announcement came after rival United Parcel Service (UPS) in January abandoned its bid for TNT Express that would have created the biggest European group in the fight for the global parcel market. "Our business faces difficult market conditions and strategic challenges," TNT Express interim CEO Bernard Bot was quoted as saying. "We are... taking immediate steps to reshape our portfolio, make the company leaner and pursue efficiencies in operational and supporting processes," Bot said. The company said it was exploring options to reduce its exposure to intercontinental capacity. "Options include capacity-sharing agreements, subleases and lease terminations," it said. The company has already started to divest its domestic operations in China and Brazil. "The sales process for domestic China is well underway and the outcome should be known imminently. Preparations for the sale of Brazil Domestic have started," the company said. It will introduce a new management structure as well as shedding the 4,000 jobs and would consult with employees, work councils and unions over the consequences and "best possible solutions."