DHL sends out 9,500 pink slips

Global- DHL will close its US Domestic Express business in 2009, cutting 9,500 jobs in the process.

DHL's US Express business will focus entirely on its international offerings and will cease its domestic-only air and ground services starting 30 January, 2009.

The logistics provider will however retain a strong international presence and capability in the US.

"This is the right move for our US Express operations given the current economic climate and for the long run," said John Mullen, Global CEO of DHL Express. "Focusing our US Express efforts on international shipping serves the best interests of our customers, employees and shareholders around the world," he said.

In order to meet its financial goals, DHL US Express will close its US ground hubs, and reduce the number of stations from 412 to 103.

This will result in an additional reduction of 9,500 US jobs at DHL Express on top of the approximately 5,400 positions already reduced since January this year.

DHL said they will retain 3,000 to 4,000 US Express employees, tailored to the needs of international express customers.

A spokesperson told ProcurementAsia that the initiative will have absolutely no impact on its Asia Pacific operations.

"It is a 100% domestic express initiative in the United States, so all the international express remains the same. Therefore Asia Pacific is not impacted by it at all and nor are any of the other business units," said a DHL spokesperson.

These measures will allow the company's US. Express business to reduce its operating costs from US$5.4 billion to under US$1 billion, a decrease of over 80%.

"Making a decision that affects the lives of many dedicated employees is never easy, but this is the best path forward for our company," said Mullen.