News / Poor Q3 at DFDS means cuts and job losses – including CEO Carlsen

Photo: DFDS

Danish ferry operator DFDS – Europe’s largest – announced a wide-ranging redundancy programme today, after reporting declining third-quarter results and the imminent departure of its chief executive.

Despite Q3 revenues increasing year on year by 4%, to DKr8.3bn ($1.28bn), EBIT for the period was down 32%, to DKr536m, as the company struggled with its expanded business lines in the Mediterranean.

In response, the company has launched a cost-cutting programme likely to result in some 400 redundancies, largely in white-collar functions, as it targets DKr300m in savings next year.

“We are initiating a cost reduction programme to accelerate our transition to a higher level of financial performance and to stay competitive in a changing market environment.

“Sadly, this means we have to reduce our workforce and part ways with valued and skilled colleagues,” said CEO Torben Carlsen.

The company said the programme was expected to be complete by the end of the first quarter next year, “driven by primarily a reduction of approximately 400 mainly office-based positions, as well as specific cost reduction initiatives across the organisation”, and would incur a one-off cost of around DKr100m.

The axe is also set to fall on Mr Carlsen himself (below) – the DFSD board announced today it was on the hunt for a new chief executive.

Photo: DFDS

“The board has decided to initiate the search for a new CEO to lead DFDS in the next phase of the strategy execution towards long-term value creation as laid out in the 2030 strategy,” said chairman Claus Hemmingsen, adding that Mr Carlsen would stay in the role until a replacement was found.

Mr Carlsen joined DFDS in 2009 as CFO and was appointed president and CEO in May 2019. He led the company through several key acquisitions, including Norfolkline in 2010, and the expansion into the Mediterranean with UN RoRo in 2018.

“On behalf of the board, I want to thank Torben warmly for his 16 years of dedication and leadership. We have truly appreciated the collaboration with Torben and look forward to continuing our close cooperation as he leads the continued delivery of strategic priorities and the announced cost reduction programme until a successor is in place,” Mr Hemmingsen added.

However, DFDS’s operations in the Mediterranean, in particular the routes out of Turkey – the development of which has been a key strategic area for expansion over the past couple of years with its troubled takeover of EKOL – continue to cause problems as it struggled to maintain its position amid fierce competition from Italian operator Grimaldi.

“Mediterranean volumes were 5.8% below 2024 on a comparable basis, as higher volumes between France and Turkey/Tunisia were offset by lower volumes between Turkey and Italy, reflecting a market rebalancing, including capacity adjustments, following the entry of a new ferry competitor in September 2024,” its interim report said.

“The total Turkey-Europe trailer transport market was in Q3 25 split between 50% road volumes and 50% ferry volumes. DFDS’s Q3 ferry share was 32% of the market and the share for all other ferry operators was 18%,” it added, adding that the 6% growth in Mediterranean ferry volumes were created by a 5% shift in volumes from road to sea, as well as 1% organic growth.

As a result, it significantly downgraded its full-year EBIT outlook from the previous range of Dkr800m-Dkr1bn, to Dkr600m-DKr750m, “driven mainly by uncertainties regarding the development in Q4 25 for the Mediterranean ferry and logistics activities”.