TNT Express to divest itself of operations in Brazil and China

March 25, 2013 at 9:32 AM

HOOFDDORP, Netherlands, March 25 (UPI) -- Dutch shipping giant TNT Express said Monday it would lay off 4,000 workers over three years in order to streamline operations and boost profits.

The play is expected to cost $195 million, but it is expected to cut operating costs by $284.6 million by 2015, DutchNew.nl reported.

The company, which currently has 75,000 employees worldwide, says their strategy involves divesting TNT's operations in Brazil and China and focusing on the European market, where the profit margin is more favorable.

"Assuming a return to normal economic conditions in Europe ... (TNT) could see an adjusted operating income margin of around 8 percent and sales growth for the period around 2 percent," the company said in a statement.

The restructuring announcement comes just a few months after the European Commission rejected TNT's plan to merge with UPS, saying the move would hurt customers by decreasing competition.

In 2012, the company lost $104.7 million, DutchNew.nl said.

Related UPI Stories
Latest Headlines
Trending Stories
Pepsi to release 'Back to the Future Part II' inspired Pepsi Perfect
Nobel Prize in medicine awarded to parasitic disease scientists
Womb transplants begin in U.K. after Sweden's success
Gay Vatican priest comes out day before Pope Francis begins synod on family issues
Scientists find roadmap that may lead to 'exercise pill'