Date: Monday November 10, 2008 10:00:18 am
-
AnonymousInactive
http://news.yahoo.com/s/ap/20081110/ap_on_bi_ge/eu_germany_deutsche_post;_ylt=AgiFXwrCMBXPfO_Hb.XhBGth24cADHL to cut 9,500 jobs and close US service centersFRANKFURT,
Germany – Deutsche Post AG will close all of its DHL Express service
centers, cut 9,500 jobs in the United States and eliminate U.S.-only
domestic shipping by land and air, the company said Monday, citing
heavy losses and fierce competition.The Bonn-based company said that
new round of cuts are on top of another 5,400 job cuts it already
announced and blamed heavy losses at the unit, which competes with
rivals UPS Inc. and FedEx Corp.The cuts are part of a wider plan to
curtail operations in the U.S., including domestic ground and delivery
services though its international shipping won’t be affected. The
express unit currently employs some 18,000 workers.
Part of the
plan calls for the halt to domestic shipping by Jan. 30, the company
said after it closes all of its ground hubs.”The retained U.S.
international express network with a total of 3,000 to 4,000 employees
will be tailored to the needs of the group’s international express
service customers,” the company said in a statement. “All international
shipments into the U.S. will still be delivered, while 99 percent of
the outbound shipments will be picked up.”
The move is expected
to reduce operating costs at the U.S. Express unit from $5.4 billion
(4.2 billion euros) to less than $1 billion (770 million euros).”The
international express offering in the U.S. will be maintained on
today’s levels and the region will remain an integral part of DHL’s
global Express network,” the company added.Shares of Deutsche Post were
up 4.2 percent at 9.77 euros ($12.60) in Frankfurt trading.
- You must be logged in to reply to this topic.
0