Deutsche Post will close all of its DHL Express service centers, cut 9,500 jobs in the US, and eliminate US-only domestic shipping by land and air, the company said today, citing heavy losses and fierce competition with UPS and FedEx. The company said the new round of cuts are on top of another 5,400 layoffs it already announced.
The Express unit currently employs some 18,000 workers. The plan calls for the halt to domestic shipping by Jan. 30, after the firm closes all of its ground hubs. The move is expected to reduce operating costs at the US Express unit from $5.4 billion to less than $1 billion. International shipping won’t be affected.