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Deutsche Post cuts 9,500 DHL jobs | Deutsche Post cuts 9,500 DHL jobs |
(about 3 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' | 'Integral part' |
Deutsche Post said the US remained a key market. | 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. |
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. | 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. | But Deutsche Post said the restructuring would lead to a net loss of 1.2bn euros in 2008 and 700m euros in 2009. |
Investors appeared to welcome the cost-cutting move as Deutsche Post shares ended Monday trading up 6.9%. |