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Deutsche Post to cut 9,500 jobs

Text by AFP

Latest update : 2008-11-10

German logistics giant Deutsche Post announced plans to cut 9,500 jobs as part of efforts to restructure the loss-making DHL express mail delivery business in the United States.

The German logistics giant Deutsche Post said on Monday it would cut 9,500 jobs as part of restructuring of the loss-making DHL express mail delivery activities in the United States.
  
Deutsche Post said in a statement that the restructuring, involving the winding up of DHL's domestic US air and ground operations, would cost about three billion euros (3.9 billion dollars).
  
The group "will focus its express business in the US on its core international competencies and exit the domestic air and ground express service in the country by the end of January," a statement said.
  
"The international express offering in the US will be maintained on today's levels and the region will remain an integral part of DHL's global Express network," it added.
  
Annual operating costs at its DHL U.S. Express unit "will be reduced from 5.4 billion dollars (4.2 billion euros) to less than one billion dollars."
  
The group said it would also cut other spending by another one billion euros by the end of 2010, updating a previous forecast of a 500 million euro reduction in 2009.
  
Deutsche Post, in which the government holds a 31 percent stake, nonetheless warned that it "will probably see a full-year reported net loss for 2008."
  
The Frankfurter Allgemeine Zeitung newspaper had said earlier on Monday that Deutsche Post "assesses for this year alone at 1.3 billion dollars, or five million dollars a day, the loss recorded in the United States."
  
But the German logistics giant said its nine-month core earnings had gained 1.3 percent to 1.6 billion euros, on sales that rose by 2.3 percent to 40.5 billion euros.
  
The price of shares in the group jumped by 8.82 percent to 10.18 euros in midday trading, while the DAX index of leading shares had gained 3.17 percent overall.

Date created : 2008-11-10

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