Kuehne+Nagel rolls out cost-cutting measures amid market pressures

Kuehne+Nagel has initiated a comprehensive cost-reduction programme aimed at achieving annual savings of at least CHF 200 million (approximately $222 million) to address ongoing market challenges, including overcapacity and margin pressures. The company plans to enhance productivity through process optimisation, increased automation, and the utilisation of shared service centres.

In the first nine months of 2025, Kuehne+Nagel reported a 3% increase in net turnover, reaching CHF 18.5 billion (approximately $23.27 billion). However, earnings before interest and tax (EBIT) declined by 17% to CHF 1.0 billion (approximately USD 1.1 billion), and net earnings fell by 17% to CHF 761 million (approximately $958 million). Currency effects negatively impacted EBIT by CHF 14 million (approximately $17.58million) in the third quarter.

Despite these challenges, the company achieved market share gains, particularly in Air Logistics, through targeted investments in logistics services for cloud infrastructure and the perishables market segment. In Sea Logistics, progress was made in the small and medium-sized enterprise (SME) market segment. The company remains focused on strategically important routes and is confident in further expanding its market position.

Kuehne+Nagel generated a strong free cash flow of CHF 521 million (approximately $589 million), up CHF 209 million (approximately $237 million) compared to the previous year. However, the company recognises the need to address cost development to maintain its competitive edge.

Stefan Paul, CEO of Kuehne+Nagel International AG, stated, "Despite very challenging market conditions, Kuehne+Nagel was able to gain market share through targeted investments in key areas. With the launch of group-wide cost reduction measures, we are now taking action to safeguard our cost base. Challenging external factors are forcing us to sustainably and permanently improve our efficiency and performance culture. Keeping high-quality levels of customer service remains a top priority."

In the fourth quarter of 2025, Kuehne+Nagel expects EBIT to exceed CHF 1.3 billion (approximately USD 1.4 billion), despite ongoing uncertainties and the impact of the trade war.