Sunday, November 09, 2008

DHL Employees Brace For Second Round Of Restructuring, Job Cuts

DHL Express, the American unit of the Deutsche Post-owned German courier, is expected to announce more job cuts when it discloses another round of restructuring in its nationwide operations on Monday.

News reports citing unnamed sources have made DHL employees weary of their jobs. In May, DHL announced the closure of several small facilities in the country and its plan to outsource domestic packaging operations to UPS.

The outsourcing will save DHL $1 billion a year but effectively ended 10,000 jobs at ABX Air, ASTAR Air Cargo and DHL.

DHL has been lagging behind competitors FedEx and UPS. The firm cited the volatile markets and a slumping economy for its poor performance.

Freight consolidator Unishipper shifted from DHL to UPS, while Walgreen's withdrew from a shipping agreement with DHL last month.

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