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Mainfreight announces hiring freeze amid tough conditions

July 28, 2023
in Business
Mainfreight announces hiring freeze amid tough conditions
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Photo: RNZ / Samuel Rillstone

Global transport and logistics company Mainfreight says conditions remain tough as it faces pressure from reduced volumes, falling freight rates and inflation.

In an update for the company’s annual shareholders meeting, it said group profit before tax in the June quarter was down 43 percent from a year ago, to $83.1 million, while revenue fell 19 percent to $1.19 billion.

In response to the tougher trading conditions, the company has announced a hiring freeze to manage costs.

It said it was looking at “efficiencies branch by branch” and was doing “more with less”.

The company was seeing “reasonable activity” in Australia, but was experiencing “poorer performances” in New Zealand, Europe and the United States.

Mainfreight chairperson Bruce Plested indicated the year ahead would be difficult.

“We have a sobering year or more ahead of us as we cope with a global recession. We are likely to have to work with ever increasing effectiveness and disciplines, added to an increased understanding of those less able to cope with declining circumstances,” he said.

However, Plested said the company saw this as an opportunity to grow market share as its competitors struggled in the tougher trading environment.

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Copyright for syndicated content belongs to the linked Source : RNZ – https://www.rnz.co.nz/news/business/494625/mainfreight-announces-hiring-freeze-amid-tough-conditions

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