Kuehne+Nagel to Cut 2,000 Jobs Amid AI-Driven Efficiencies and Weak Demand

Home / News / Air Cargo / Kuehne+Nagel to layoff 2,000 workers amid weak demand, AI push {"@context":"http:\/\/schema.org","@type":"BreadcrumbList","@id":"#Breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"item":{"name":"Home","@id":"https:\/\/www.freightwaves.com\/"}},{"@type":"ListItem","position":2,"item":{"name":"News","@id":"https:\/\/www.freightwaves.com\/news\/category\/news"}},{"@type":"ListItem","position":3,"item":{"name":"Air Cargo","@id":"https:\/\/www.freightwaves.com\/news\/category\/news\/aircargo"}}]} Air Cargo American Shipper Company Earnings Container Shipping International Layoffs and Bankruptcies Logistics/Supply Chains News Kuehne+Nagel to layoff 2,000 workers amid weak demand, AI push Middle East conflict could increase air cargo business, push up rates Eric Kulisch · Tuesday, March 03, 2026 Kuehne+Nagel’s pharmaceutical logistics hub in Ljubljana, Slovenia, is part of the contract logistics division, which performed well in the fourth quarter. (Photo: K+N) .instaread-audio-player{margin-left:auto !important;margin-right:auto !important;min-height: 135px;} A turbulent geopolitical environment headlined by proliferation of global tariff regimes and weak shipping demand took a toll on Kuehne +Nagel in the fourth quarter, as core operating income fell 20% year over year to $432.4 million.  The Switzerland-based logistics behemoth’s net revenue grew a modest 3% to $2.9 billion. Full-2025 net revenue was $11.4 billion, up only 2% from the prior year, according to financial results released on Tuesday. For the year, recurring earnings before interest and taxes declined 17%, primarily due to yield pressure on sea freight during the second and third quarter. Earnings per share were down 25%. Kuehne+Nagel ( SIX: KNIN )implemented a cost-reduction program in October that is expected to eliminate $258 million in costs by the end of 2026. Management said it will eliminate more than 2,000 full-time positions, saving $193 million. The headcount reduction is mostly related to tech-enabled efficiencies and less about soft demand, executives said. The company had about 85,000 workers at the end of 2025, about 5,000 more than in the prior year. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668545404-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668545404-0'); }); The third-party logistics provider issued guidance of about $1.7 billion in operating income, but management acknowledged the outbreak of war in the Persian Gulf could alter results. CEO Stefan Paul said the air cargo industry could benefit from the disruption as businesses shift from ocean freight to bypass ocean bottlenecks. Freight forwarders tend to do well when supply chains are roiled as shippers look for experts that can find alternative transport capacity by leveraging extensive carrier relationships. Flight suspensions from carriers avoiding the Middle East have reduced global air cargo capacity by 18%, according to Rotate, an air logistics consulting firm based in the Netherlands. About 80% of air freight capacity controlled by Middle East carriers, including passenger and all-cargo aircraft, is grounded. Paul said backlogs could begin developing in Southeast Asia and China for the European and U.S. markets if the conflict isn’t resolved by then.  K+N is working to help customers secure charter flights, but it is too early to say how the war will impact supply and demand in the near future, he added.  “If the situation continues I would expect short-term rates to rise rapidly on the Indian subcontinent and Southeast Asia to Europe and U.S.  East coast markets,” Niall van de Wouw, chief airfreight officer at Xeneta, a freight data provider, told FreightWaves in an email.  K+N expects strong customer demand in 2026 from the aerospace, healthcare, pharma, high tech, semiconductor, and data center sectors, including Tesla. Core profit from ocean logistics fell 46%, behind a 2% decline in volume y/y, versus a strong prior year comparison, and weak shipping rates — even as net revenue increased 5% to $682.8 million. Volume was weakest on the trans-pacific trade lane as U.S. tariffs discouraged imports from Asia. The largest ocean freight forwarder handled 4.3 million standard container shipping units last year, as volume barely budged (+0.3%) from the prior year. Yields are expected to be pressured again this year as ocean carriers add new-build capacity The sea business unit achieved its strategic objective of expanding business with small and medium-sized customers, who for the first time accounted for half of total volumes on