DHL Cuts 9,500 Jobs, Pulls Out of U.S.
DHL Express is the latest company to show dissatisfaction with the current state of the United States economy, announcing this week that all air and ground domestic delivery operations within the United States will be ceased, and 9,500 jobs will be cut.
Previously in charge of 4 percent of the shipping services market share in the US, and a pending deal with UPS on the table, DHL’s withdrawal from the United States market seems imply that the company has a less than optimistic view of the future of the U.S. economy.
The 9,500 jobs to be cut represent over fifty percent of the current DHL work force, and come after the reduction of 5,400 employees earlier this year. The reduction in force is expected to affect employees of all DHL U.S. based ground hub locations, and the 309 DHL stations planned for closure.
According to a CNN Money report on the DHL company webcast detailing the announcement, parent company Deutsche Post World Net’s Chief Executive Frank Appel commented “We see a significant shortfall in the U.S. part of our express business due to the fact that the economy has weakened deeply”, and that “We have taken a massive action in the U.S.”
Speculation exists regarding the ongoing potential of the DHL and UPS deal which has been in negotiation for most of the year, however analysts still feel that UPS could make use of DHL air transportation services between airports.
Perhaps the most concerning aspect of the news however is the potential domino effect in local communities which have come to rely on DHL centers and hubs for employment. One community in particular, that of Wilmington, Ohio, seems to be hardest hit due to a strong mutual relationship between DHL in Wilmington, and the local ABX Air, Inc. and Air Cargo Carrier transport companies.
Both UPS and Fedex stand to gain by DHL’s withdrawal however, with DHL’s 4 percent market share now up for grabs which had represented $3.4 billion in revenues for the company in 2007.
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"...company has a less than optimistic view of the future of the U.S. economy." more likely they've been having their lunch handed to them by UPS and FEDEX. Is it me or did DHL always seem one step up from a pizza delivery service?
Lol, I've seen one of their trucks ever. UPS and Fedex were just better services period. This is like circuit city blaming the economy. Circuit city failed because they sucked, DHL failed for the same reasons. They sucked.
"market seems imply"
"and come after the reduction"
Does nobody proof this stuff anymore?
you know the saying, there's a reason for everything?
well the reason for our economic crisis was to get DHL outta the states. CRISIS FTW
well the reason for our economic crisis was to get DHL outta the states.
To get DHL out of the states? Give me a break....
You buy stuff from China. Why not get that stuff out of the states too. Dumb hick FTW!
That picture of the "Weekly World News" really bothers me. The more that people spread pandemic, the more we have one.
Sorry to hear that so many people will be loosing their jobs due to the shortcomings of others.
But;
DHL has lousy service. I have only used them once (not by choice) and they mishandled a package that arrived 4 weeks late and they didn't even handle the final delivery, instead just dropped it off with a letter carrier.
Every that I have ever spoken with about DHL say that same thing "DHL sucks" UPS, FedEX and The USPS already have a tight stranglehold on the package delivery market; there isn't much room for another competitor especially a poor quality one. DHL closing down or cutting back was inevitable.
Sorry to hear that so many people will be loosing their jobs...
For the last time. It's LOSING!
Lol wtf is up with people saying loosing recently? It's hilarious when I'm called a "looser" online. I just go wtf? Are you retarded?
DHL is fine, good prices and fast service. It's hard to convince a company to switch shippers when they already know the drivers/service reps. UPS and Fedex aren't better, in fact they are usually slower, but they are just bigger and have customer service reps available. DHL tried to compete at the wrong time that's all... ten years ago they would dominate.