Kuehne+Nagel has announced significant job cuts, planning to eliminate over 2,000 full-time positions. This decision comes as the global logistics giant grapples with a challenging economic landscape, characterized by widespread tariff implementations and a downturn in shipping demand. These factors have impacted the company's financial performance, with core operating income dropping 20% year-over-year to $432.4 million in the fourth quarter.

Despite a modest 3% increase in net revenue to $2.9 billion for the fourth quarter, the full-year 2025 net revenue saw a marginal 2% rise to $11.4 billion. The company's recurring earnings before interest and taxes (EBIT) for the year declined by 17%, largely attributed to price pressures in the sea freight sector during the second and third quarters. Earnings per share also experienced a 25% decrease.

In response to these challenges, Kuehne+Nagel initiated a cost-reduction program in October, aiming to achieve savings of $258 million by the end of 2026. The planned elimination of more than 2,000 jobs is expected to contribute $193 million to these savings. Company executives clarified that the workforce reduction is primarily driven by advancements in technology and AI-enabled efficiencies, rather than solely by the current soft demand.

This move follows a period of growth, as the company had approximately 85,000 employees at the close of 2025, an increase of about 5,000 from the previous year.