Hapag-Lloyd to Slash Over 1,000 Jobs

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A Hapag-Lloyd spokesperson has confirmed that the German container shipping company will cut over 1,000 employees after starting its merger with United Arab Shipping Company (UASC), reported Reuters.

After securing its place as the firth largest container shipping company in the world last week, Hapag-Lloyd  now plans to make 12% of its almost 11,000 land-based workforce jobless over the next 18 months to two years.

The company is yet to confirm where jobs will be cut, but the spokesperson reportedly stated that some 2,100 sea-based jobs will not be affected because vessels would continue to travel.

Hapag-Lloyd also confirmed that the cuts will not take place until both companies start the merger process in eight weeks.

The spokesperson added that cost savings through merging offices and overheads, along with network and procurement, were more important than labour costs.

Hapag-Lloyd recently announced a capital injection for the expansion of the company's supervisory board.

Global law firm White & Case LLP is also advising UASC and its major shareholders Qatar Investment Authority (QIA) and the Public Investment Fund of Saudi Arabia (PIF) on the merger.

Once the two comapnies have merged, Hapag-Lloyd's Chief Executive expects its container growth to be above the global average.

Drewry recently shared a positive outlook for container shipping companies' end of year profits after combined operating losses amounted to US$16 million in Q1 for 2017.

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