DHL Layoff May Leave 20,000 US Workers Jobless

According to a Bloomberg TV report, DHL has finally decided to close all its express shipment operations in USA. That includes Ground and Air Operations. DHL Express will also close down Scottsdale Center where more than 736 people will lose job. The people include more than 100 IT Professionals. The DHL news did not came as surprise as company has not made any profit from it’s DHL Express service in USA. It is also being reported that FED Ex will become the preferred partner for deliveries in USA. Means DHL will still ship to USA.

Few day back , Bonn, Germany-based Deutsche Post AG, the parent company of DHL, said it will cut 9,500 jobs in the U.S., eliminating all air and ground shipments between American cities by Jan. 30. However, the company said it will continue to handle international package shipments into and out of the U.S.

Also DHL said it will continue other operations in the U.S. such as freight forwarding and global mail, which will not be affected by the cutback.

A DHL delivery truck drives outside a DHL facility in Franklin Park, Ill.

Business Week Reports

Package delivery company DHL may have conquered the world, but it admitted on Nov. 10 that it couldn’t conquer the U.S. The unit of Germany’s Deutsche Post (DPWGN.DE) announced it will stop making express deliveries within the U.S., close all of its 18 main distribution hubs there, and lay off all but a few thousand of its remaining 13,000 U.S. workers.

Associated Press Reported

DHL’s current vendors for air shipments within the U.S., ABX Air and ASTAR Air Cargo, have been opposed to the DHL-UPS deal, saying it would cost thousands of jobs if it went through. Now, given the extent of Deutsche Post’s announcement, many jobs could be lost at the two companies even if the DHL-UPS deal isn’t completed.

ABX spokeswoman Beth Huber said the decision will affect ABX’ work force and operations. Just how much of an impact has yet to be determined, she said. ABX has about 7,000 employees.

A woman who answered the phone at ASTAR’s offices declined to comment or take a message for a spokesperson, referring calls to DHL instead.

Kyle James a Reporter for Market Place from Berlin Reported

The numbers are all over the place, but German media reports are saying anywhere from 12,000 to nearly 20,000 jobs could be cut in the United States. This would likely affect drivers, shipping clerks and warehouse workers.

DHL is a unit of the German logistics giant Deutsche Post. The company has already announced it expects to lose $1.6 billion at its U.S. express delivery business by the end of this year. It blames intense competition, high fuel prices and shrinking investments due to the global economic crisis.

Deutsche Post says it is not leaving the U.S. all together. Its state-side logistics unit employs about 25,000, and some staff at DHL are expected to stay.

The above report is most shocking of all as it will add to already high number of un-employment in US. Difficult times ahead. I am pretty sure we are still not at the bottom of economic downturn yet….

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