NOL announces cost reduction initiatives

Neptune Orient Lines (NOL) is to cut its global workforce level by around 1,000 people, and shift its US regional headquarters from Oakland to a "morecost effective location" in the US, in the latest of a series ofcost-cutting initiatives undertaken by the Singapore-headquartered group.

The move follows the decision by NOL last month, to cut capacity on theAsia/Europe and Transpacific trades.

These capacity reductions are estimated to save NOL some US$200m next year.

Some 50 jobs are also expected to go at the Singapore headquarters, andthere will be a series of changes in the way the APL Logistics is managed,which is expected to create "efficiencies and a clearer line of sight ofroles and accountabilities".

NOL Group president/ceo, Ron Widdows said he anticipated, "NOL's plans wouldlead to a restructuring charge of approximately US$33m in NOL Q4 financialresults, but would deliver positive financial outcomes in future years".

Source: PR News (Copy: 5782)