In order to meet its financial goals, Deutsche Post World Net, parent company of DHL Express, today said it will discontinue its US-only air and ground services, resulting in the loss of 9,500 jobs. The move will allow the U.S. Express business to cut its operating costs from $5.4 billion to under $1 billion – a drop of more than 80%.
Beginning Jan. 30, DHL’s U.S. Express business will focus entirely on international offerings and reduce the number of its US service centers from 412 to 103.
“This is the right move for our US Express operations given the current economic climate and for the long run,” said John Mullen, Global CEO of DHL Express, in a release from the company. “Focusing our US Express efforts on what we do better than anyone else – international shipping – serves the best interests of our customers, employees and shareholders around the world.”
The newly announced job losses are on top of 5,400 positions already reduced by the Bonn-based company since January. The company will retain 3,000 to 4,000 U.S. Express employees to handle its international express business.
The company said there would be no impact on services offered by other DHL/DPWN businesses in the US: Global Forwarding/Freight, Supply Chain/Customer Information Services (CIS) and DHL Global Mail.