Danish shipping giant DFDS is eliminating approximately 400 positions and replacing its CEO following disappointing third-quarter results. The company announced these major changes alongside a significant reduction in its profit expectations for the coming year.
The ferry and logistics operator revealed that CEO Torben Carlsen will step down from his position. Company chairman Claus V. Hemmingsen stated the board has initiated the search for a new chief executive to lead DFDS through its next strategic phase. Carlsen will remain in his role until a successor is appointed.
DFDS reported troubling financial results for the third quarter. While revenue grew by four percent to 8.3 billion Danish kroner, operating profit plummeted by 32 percent to just 536 million kroner. This disconnect between revenue growth and profit performance triggered the company's decision to implement cost-cutting measures.
The company now expects operating profit between 600 and 750 million kroner for the current year, down significantly from previous projections of 800 million to one billion kroner. Management cited uncertainty around Mediterranean ferry and logistics activities in the fourth quarter as the primary reason for this downward revision.
To address these challenges, DFDS has launched an extensive savings program targeting 300 million kroner in reductions. The job cuts affecting about 400 positions represent the most substantial component of this initiative. Most of the eliminated roles will be office-based positions spread across DFDS's global operations.
Approximately 100 of the affected jobs will be in Denmark, with the remainder distributed throughout the company's international network. DFDS currently employs around 16,500 full-time staff across 20 countries worldwide.
The company traces its origins to 1866 when it was founded as Det Forenede Dampskibs-Selskab. Today, DFDS operates ferry routes throughout Europe with its main focus on freight transport rather than passenger services.
This restructuring comes at a challenging time for European shipping and logistics companies. Many operators face rising fuel costs, changing trade patterns, and economic uncertainty across key markets. DFDS had previously characterized the coming year as a transition period aimed at laying the foundation for improved future performance.
The Mediterranean operations have become a particular concern for DFDS management. This region has experienced increased competition and fluctuating demand patterns that have impacted profitability. The company's decision to cut positions reflects a strategic shift toward leaner operations amid these market challenges.
Industry observers note that leadership changes during such transitions are common as companies seek fresh perspectives to navigate difficult market conditions. The new CEO will inherit the task of implementing DFDS's long-term strategy while managing the immediate pressures of reduced profitability and organizational restructuring.
What remains unclear is how these job cuts will affect DFDS's operational capacity and service quality. The company must balance cost reduction with maintaining its competitive position in European shipping markets. Customers and investors will closely watch how these changes impact DFDS's ability to deliver consistent service during this period of organizational transformation.