Can't avoid job cuts, relocation: DSV on plans for Panalpina HQ in Basel
Oct 15, 2019: Global transport and logistics company DSV has revealed plans for Panalpina's headquarters in Basel, Switzerland that could result result in up to 165 job losses.
However, DSV Panalpina expects to retain approximately 50 percent of Panalpina’s current head office workforce following completion of the restructuring by the end of Q2 2020. Retained functions will include, among others, critical positions in sales, operations, IT and iinnovation.
Even as the company intends to expand its logistical footprint in the Basel area, as part of the DSV Panalpina integration, overlapping corporate functions and positions will either be cut or relocated to the headquarters in Denmark, announced the company.
“As we integrate Panalpina into the DSV Panalpina Group, we recognise that there are substantial duplications of corporate functions,” said Jens Bjørn Andersen, CEO, DSV Panalpina.
“We are also seeing considerable overlaps in the IT department, as IT systems that will no longer be used in the combined group are phased out. As a result, we are considering several restructuring measures. According to our analysis, we will not be able to avoid job cuts and the relocation of positions to DSV Panalpina’s headquarters in Denmark,” added Andersen.
Speaking to employees at the former Panalpina headquarters last week, Jens H Lund, Group CFO reinforced the company’s commitment to do all within its reasonable control to find appropriate solutions for everybody affected.
At the same time, he underlined DSV Panalpina’s strong interest in retaining a commercial and operational presence at its Basel office and in expanding its logistical footprint in the Basel area in the mid-term by consolidating suitable operational activities in Switzerland. To that effect, DSV Panalpina has established contacts with key representatives of the Department of Economic, Social and Environmental Affairs of the Canton Basel-Stadt to explore opportunities for investment in the Basel area.
DSV Panalpina is currently working out details of a social plan with the necessary consultation process in line with Swiss labour law.