DHL (Deutsche Post) to Fire 9,500 Workers in U.S.
November 10th, 2008Via: AP:
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 express shipping by land and air, the company said Monday, citing heavy losses and fierce competition.
The Bonn-based company said the 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.
Deutsche Post investors cheered the decision, sending the company’s shares up 7 percent to 10 euros ($12.90) in Frankfurt trading.
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 to and from the U.S. would continue. The Express unit currently employs some 18,000 workers.
However, Deutsche Post said the U.S. remained a key market and that its other operations there, including freight and global mail and other logistics, won’t be affected by the closings.
Deutsche Post’s U.S. logistics unit employs more than 25,000 workers in the U.S.
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 and reduces the number of service centers from 412 to 103 across the U.S.
At a press conference, company officials, including chief financial officer John Allan said the job cuts and location closures would be “clear across the country,” without being more specific.
I’m trying to calculate all of the “job losses” that have been report of late for companies in the Pittsburgh,Pa region and can’t believe the numbers I’m hearing.
Only because these jobs losses were reported over a year or more in a local economy just 90 miles northwest. Five miles from the Ohio border in Youngstown, Ohio.
Cripes, all we used to read a few years ago was how this place was too expensive for labor.
Trickle down effect allright. Suburbs too expensive now. Unless your an Amish, or a person that has a paycheck.
Eileen said: ‘I’m trying to calculate all of the “job losses” that have been report of late for companies in the Pittsburgh,Pa region and can’t believe the numbers I’m hearing.’
And as lousy as it is around there, Pittsburgh is actually doing better than the rest of the country right now.
http://www.pittsburghtoday.org/web/indicators.jsp?cat=3