Kuehne+Nagel plans $220M cost-cutting to tackle market pressures

Kuehne+Nagel has initiated a comprehensive cost-reduction programme aimed at achieving annual savings of at least CHF 200 million(approx $222 million). This strategic move comes in response to challenging market conditions characterised by overcapacity and margin pressure.

Despite these challenges, the company reported a 3% increase in net turnover for the first nine months of 2025, reaching CHF 18.5 billion(approx $23.27 billion). However, earnings before interest and tax (EBIT) declined by 17% to CHF 1.0 billion(approx $1.1 billion), and net earnings fell by 17% to CHF 761 million(approx $958 million). Currency effects negatively impacted EBIT by CHF 14 million( approx $17.58 million) in the third quarter.

In response to these financial pressures, Kuehne+Nagel is implementing structural and sustainable measures to enhance productivity. These include process optimisation in central functions and markets, as well as increased use of automation and shared service centres.

CEO Stefan Paul stated, "Despite very challenging market conditions, Kuehne+Nagel was able to gain market share through targeted investments in key areas. With the launch of group-wide cost reduction measures, we are now taking action to safeguard our cost base. Challenging external factors are forcing us to sustainably and permanently improve our efficiency and performance culture. Keeping high quality levels of customer service remains a top priority."

The company also announced that Partners Group exercised its put option to sell its 24.9% stake in Apex, a transaction expected to be completed in the fourth quarter of 2025. This move is part of Kuehne+Nagel's broader strategy to strengthen its financial position amid ongoing market uncertainties.

Looking ahead, Kuehne+Nagel anticipates EBIT for the full year 2025 to exceed CHF 1.3 billion(approx $1.26 billion) billion, despite the challenging market environment.