Deutsche Post (DHL Shipping) to shed thousands of US jobs (20,000 jobs)

Source: AFP

BERLIN (AFP) – German logistics giant Deutsche Post will on Monday announce thousands of job losses in the United States in the wake of heavy losses, a German newspaper reported.

In its edition to appear Monday the Frankfurter Allgemeine Zeitung (FAZ) says that group chief executive officer Frank Appel "cannot do other than announce massive job cuts" when he presents third quarter results that day."

According to the FAZ, "40,000 jobs are under threat in the United States," of which "20,000 are directly linked to Deutsche Post and as many again to the US partners."

The paper said that within the group there was talk of a "bloodbath".

Deutsche Post had already revised downwards its objectives for 2008 and "assesses for this year alone at 1.3 billion dollars, or five million dollars a day, the loss recorded in the United States," the FAZ said.

Read more: http://news.yahoo.com/s/afp/20081109/bs_afp/germanyusfinanceeconomylogistics

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background:

Deutsche Post to discuss DHL restructuring

NEW YORK: As the German parent of struggling shipper DHL prepares to release third-quarter results, analysts and industry observers predict Deutsche Post AG will announce major changes at DHL, though it's unclear whether those changes would impact a deal DHL has been working out with rival UPS.

Unions that represent some DHL employees and pilots that currently provide air service for some of DHL's shipments said Friday they had not been informed of any upcoming changes. But DHL scheduled a conference call with reporters for Monday afternoon to discuss news that was to be announced earlier in the day and answer questions about DHL's U.S. Express business.

DHL spokesman Jonathan Baker declined to provide details Friday on what will be announced Monday. As to the talks with UPS, he said, "We are continuing to talk with UPS. The talks are constructive. We expect to finalize our negotiations by year-end."

Deutsche Post has acknowledged problems of repeated losses and dwindling sales at its U.S. unit, but has repeatedly said that a retreat from the market is not under consideration. In May, DHL cut U.S. network capacity by 30 percent.

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A great service, will be sorely missed.

They buy out airborn express and fire their own drivers and keep the abx idiots

at least in my admittedly limited experience

cheaper to hire part timers then pay healthcare to full time employees. It's also the UPS buisness model

I'm sure UPS, Fedex and Airborne are going to be pleased and can build their business accordingly.

they all may hire a few more part timers as a result.

And I'm a Teamster member. Hopefully, we'll start picking up some business because of this.

but since it raised its rates last time around, it does nothing particularly well. It's not the cheapest, it's not the fastest, it doesn't handle packages particularly well. Simply put, there's no reason to use DHL anymore, in my opinion.

Have some connection to DHL?