LA Times: Deutsche Post's subsidiary DHL Express in US lays off 9,500, cedes U.S. delivery market to UPS, FedEx
Deutsche Post's subsidiary DHL Express in US lays off 9,500, cedes U.S. delivery market to UPS, FedEx
DHL Express, Deutsche Post AG's overnight-delivery unit, said today it will abandon efforts to compete with United Parcel Service Inc. and FedEx Corp. in the United States, laying off an additional 9,500 workers and closing three-fourths of its outlets. Deutsche Post's spending on U.S. express operations, including the unit's losses, reorganization costs and the price of acquiring the former Airborne Inc.'s ground unit in 2003, will total $9.6 billion by the end of next year, Chief Executive Officer Frank Appel told reporters at the company's Bonn headquarters today.DHL Express ranked fourth in U.S. express deliveries with 5% of the market, behind UPS, Memphis, Tenn.-based FedEx and the United States Postal Service, which is No. 3 with 13%, according to SJ Consulting.
