News / CMA CGM commits to no job cuts for a year, following Bolloré deal

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Shipping line CMA CGM has not ruled out redundancies following the recent completion of its $5.3bn takeover of Bolloré Logistics – but not for at least the next 12 months.

Bolloré employs around 15,000 staff in its global network spanning 146 countries and 358 locations.

A major logistics player in the shape of Ceva is already part of the CMA CGM group and bringing in Bolloré Logistics is expected to produce revenue of approximately $24bn, based on 2022 results, and generate in excess of 2m teu of sea freight and 800,000 tonnes of airfreight.

And more than 900,000 sq metres of new warehouse space will add to the 10.3m sq metres already managed by Ceva.

A merger of this size and scope, especially between direct rivals, produces speculation that the overlap – be it in terms of business verticals and geography – will lead to redundancies and network re-structuring.

But a spokesperson for the ocean shipping line told The Loadstar: “CMA CGM is committed to not cutting jobs in relation to the Bolloré Logistics deal for at least a year. Moreover, CMA CGM will maintain all the social benefits (of staff) for at least three years.”

The spokesperson added that Ceva Logistics CEO Mathieu Friedberg, also EVP logistics for CMA CGM Group, will head Bolloré Logistics.

He recently told French media: “We’ve been growing fast and have strengthened the CMA CGM’s Group’s logistics activities with several critical acquisitions in certain business lines and geographical markets. We needed to achieve critical mass and grow our expertise in sea and air freight management.”

The CMA CGM spokesperson added: “Growth is in our DNA. Ceva welcomed nearly 20,000 new employees with Ingram Micro’s Commerce & Lifecycle Services business in April 2022 to support its growth in e-commerce. We also acquired French company Colis Privé in April 2022 to strengthen our last-mile transport offer, particularly in France. In July 2022, the acquisition of Gefco gave us a further 12,000 employees.

“The group’s logistics footprint is extending into new geographies. Bolloré Logistics has a strong presence in Europe – as does Ceva – but also in Asia-Pacific and the Americas. Thanks to Bolloré Logistics expertise, the group is increasing its presence and market share in key sectors such as luxury goods, beauty, aerospace, defence and healthcare.”

The Bolloré Logistics name is expected to be retained during a transitory period, but will be absorbed into the Ceva Logistics brand, confirmed Mr Friedberg.