The Danish supply chain specialist has begun a review of “synergies” and “redundancies” following the close of its $1.35 billion acquisition of struggling third-party logistics provider UTi Worldwide.
DSV A/S has begun laying off workers at UTi Worldwide following the close of its $1.35 billion acquisition of the struggling third-party logistics provider last month.
The Danish supply chain specialist will let go of 41 employees at its Portland, Ore. offices, including software engineers, business analysts and managers, according to a report from the Portland Business Journal.
Copenhagen-based DSV told the Wall Street Journal the layoffs are part of an overall review of its newly acquired business and that there could be more to come.
“As with any company acquisition, the integration process gives way to a period of discovering not only synergies, but also redundancies where UTi and DSV overlap,” said DSV spokeswoman Tina Hindsbo. “We are unable to predict the number of layoffs that will take place during this phase.”
Hindbo said the Portland layoffs primarily centered on IT support workers for a legacy UTi system that DSV does not plan to use.
Prior to its purchase, UTi Worldwide was ranked number 20 among NVOs by research firm Zepol Corp., but took a $203 million operating loss in 2014.
DSV begins UTi Worldwide layoffs
