Deutsche Post is to layoff 9,500 more people at its loss-making DHL division in the United States. Europe’s biggest mail and express delivery company now plans to focus the US operation on international shipping. The job cuts come on top of 5,400 previously announced for the US.
Frank Appel, Deutsche Post’s CEO said: “Of course we’re feeling the consequences of the financial crisis. Just by reading the newspapers every day you can see that demand is down. We assume that worldwide, the sector will see falling volume and that will, of course, have an effect on our business.”
Deutsche Post is predicting a full year loss of almost 1.2 euros for DHL and believes its restructuring costs there will now be three billion euros. The decision was announced as Deutsche Post said its third-quarter net profit more than doubled to 805 million euros compared with 350 million euros in the same period last year.