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| Deutsche Post cuts 9,500 DHL jobs | Deutsche Post cuts 9,500 DHL jobs |
| (about 2 hours later) | |
| Deutsche Post is to cut 9,500 jobs at DHL Express in the US and scale down the operations of the US business. | Deutsche Post is to cut 9,500 jobs at DHL Express in the US and scale down the operations of the US business. |
| Deutsche Post also said it would scrap DHL Express's US domestic-only air and ground operations to focus entirely on its international business. | Deutsche Post also said it would scrap DHL Express's US domestic-only air and ground operations to focus entirely on its international business. |
| The cuts come on top of the 5,400 jobs that have already been shed at the unit since the start of the year. | The cuts come on top of the 5,400 jobs that have already been shed at the unit since the start of the year. |
| Deutsche Post, Europe's biggest mail carrier, bought DHL in 2002. DHL's main US competitors are UPS and FedEx. | Deutsche Post, Europe's biggest mail carrier, bought DHL in 2002. DHL's main US competitors are UPS and FedEx. |
| The cutbacks at DHL Express will cost about 3bn euros ($3.9bn, £2.4bn), but Deutsche Post said it should cut operating costs at the US business from $5.4bn to less than $1bn. | The cutbacks at DHL Express will cost about 3bn euros ($3.9bn, £2.4bn), but Deutsche Post said it should cut operating costs at the US business from $5.4bn to less than $1bn. |
| Currently there are some 18,000 workers in the express unit. | Currently there are some 18,000 workers in the express unit. |
| 'Integral part' | |
| Deutsche Post said the US remained a key market. | |
| "The international express offering in the US will be maintained on today's levels and the region will remain an integral part of DHL's global Express network," the company said. | "The international express offering in the US will be maintained on today's levels and the region will remain an integral part of DHL's global Express network," the company said. |
| Investors welcomed the Monday announcement and shares in Deutsche Post rose almost 7% in Frankfurt. | |
| The company reported a jump in its third-quarter net profit, which more than doubled to 805m euros compared with the same period a year ago. | |
| But Deutsche Post said the restructuring would lead to a net loss of 1.2bn euros in 2008 and 700m euros in 2009. |