DHL U.S. Express will cut 9,500 U.S. jobs beginning Jan. 30, in order to meet its financial goals. That’s in addition to the approximately 5,400 positions it’s already eliminated earlier this year.
According to wire service reports, Deutsche Post, the Bonn, Germany-based parent of DHL, blamed the move on heavy competition from United Parcel Service Inc. and FedEx Corp. as well as severe financial losses stemming from the weak U.S. economy.
Because of losses expected to amount to $1.5 billion for its U.S. operations this year, DHL plans to close 18 U.S. airport hubs and shut all but about 100 of its 412 U.S. service centers. The company projected that daily U.S. package volume would drop to about 100,000 from between 1.2 million and 1.5 million.
Next January, the company said its U.S. Express business will focus entirely on its international offerings and will discontinue its domestic-only air and ground services.
“This is the right move for our U.S. Express operations given the current economic climate and for the long run,” said John Mullen, Global CEO of DHL Express, in a statement. “Focusing our U.S. Express efforts on international shipping serves the best interests of our customers, employees and shareholders around the world.”
This move will not affect other DHL-affiliated businesses in the U.S. such as global forwarding/freight, supply chain/customer information services and DHL global mail, the company said.
As DHL was announcing this, Stephen Kearney, U.S. Postal Service senior vice president of customer relations issued a statement saying “the USPS is open for business and ready to deliver with a full range of competitively-priced shipping products and services, whether large business customers, small retailers or individuals.”
