According to an internal memo secured by London`s Containerisation International, APL intends to close European offices and "merge or suppress" a wide range of positions within the company`s north Asia division.
"APL`s `hybrid functional-and-geographic structure` in North America is being changed to a purely functional model. Area sales will be consolidated and, together with customer service, will be integrated with Sales & Marketing," said the report, adding that APL`s head office purchasing department team will join finance department.
The Philippines will become part of the north Asia division. Offices will be closed in Lithuania, Latvia, Portugal and Switzerland, with Swiss business being run from Austria.
A new vice-president will have global accountability and responsibility to cut across all groups and functions that influence fuel spending, said the report. Another vice-presidency is being created to take on responsibility for the development and management of a global commercial strategy. Both will report to APL chief executive Kenneth Glenn.
South Asia regional president Goh Teik Poh is being replaced by Jason Wong. Mideast vice president Steven Dolan will not be replaced when he moves to the North American region. Egypt and Saudi Arabia will come under the current managing director in Egypt, Aziz Toha. And a new UAE-based managing director will be appointed with responsibility for the UAE, Bahrain and Mideast agencies.
This comes in the wake of APL`s recent financial losses, and includes plans to cut US$70 million from operating expenses.