DHL Will Cut 9,500 Jobs, Stop Domestic US Service

German firm shutters DHL Express service centers as its competition gets the better
By Newser Editors and Wire Services
Posted Nov 10, 2008 10:07 AM CST
Competition from UPS and FedEx are driving DHL to slash its US services, the German-based shipping company said today.   (AP Photo)
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(Newser) – 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.