TNT Post has announced it will lay off 2,800 staff in Netherlands instead of the original 4,500 because of the prevalence of electronic communications and stiff competition nationwide.

The retaining 1,700 jobs will be in the Auto Unit and other departments in the company, reported London's International Freighting Weekly. "The unions will present the agreement in principle to their members with a recommendation for acceptance, and will not undertake further industrial action," TNT said.

The unions will hold meetings with their members in the new year, following by a vote at the end of January to make a final decision.

TNT is separating its express and mail divisions throughout the world, which was to be completed in January, because little synergy is found between the two.

"Mail is faced with a continuously declining mail market in the Netherlands and has to focus on sustaining solid cash flows and operational efficiency," it said.

"Express's priorities are to grow its existing strong European networks, to continue to grow the intercontinental business from and to Europe into adjacent markets and to secure contributions from its existing strong positions in China, South America and India.

"Separation will enable greater internal focus on each business, with single-business investment discipline and capital allocation and leaner, more flexible organisations.

"Externally, separation will provide more transparency and two distinct shareholding opportunities, with a clear choice of investment between a value and growth stock. Separation will also facilitate participation in sector consolidation and merger and acquisition," said the company statement.

Source: Shipping Gazette