Deutsche Post, the German mail and logistics group that DHL, had said that it was planning to maintain its American operations by turning over its domestic air-cargo service to a rival, UPS. Instead, Deutsche Post, said Monday that it would cut 9,500 jobs at its US units, eliminating all domestic services starting January 30, 2009. This includes Same Day Service, Next Day 10:30 AM, Next Day 12:00 PM, Next Day 3:00 PM, 2nd Day, Ground, and Smart Mail.
Additionally, starting Nov. 10, 2008, DHL Express U.S. no longer accepts Domestic Express and Ground shipments, unless one has a DHL account number.
DHL said it would close its U.S. Express ground hubs, and reduce the number of stations from 412 to 103, resulting in 9,500 job cuts on top of the roughly 5,400 positions it has eliminated since January. The company said it would retain 3,000 to 4,000 employees to serve its international express customers.
The news of the 9,500 job cuts will hit Wilmington, Ohio the hardest. DHL built the hub there in 2005 on a former Air Force base with the help of a $400 million state and local incentive package. Wilmington Ohio is home to a distribution hub, and more than 7,000 jobs will disappear in a city of about 12,000, at one time. "This is a catastrophic event for the entire region," said David L. Raizk, the mayor of Wilmington. He said that 20 percent of the region's businesses depend on the hub and would most likely close.
John Mullen, Global CEO of DHL Express stated, "Making a decision that affects the lives of many dedicated employees is never easy, but this is the best path forward for our company."
Sherrod Brown, (D-OH) wants quick action on federal aid to retrain workers and provide other help for the thousands who lose their jobs and said he would press DHL to help Wilmington financially. The city wants to purchase the airport and attract new business but needs help. "DHL really owes something back to the community, to say the least," Brown said. "I'm hopefully that it will be a good citizen and turn over the air park with some subsidies."
Hubs in Allentown, PA, and Riverside, CA, are also scheduled to close, as well as 18 regional sorting centers. The move is expected to reduce operating costs to less than $1 billion, from $5.4 billion.
Now one is going to have to rely on UPS or FedEx for package deliveries. If I had anything shipped by DHL, it was on time, delivered at my door and undamaged. UPS and FedEx deliveries never stop, don't leave a note, and just throw it in a package room, for me to call them three days after it is due to find its already been delivered, but not to my address, but has my signature, and the package is crushed. Or to find out that it's been misrouted and will be delayed 2-4 days, and again is never delivered to my door, a note is never left, yet its been "delivered" to my address, with my signature, yet its sitting in another building in a package room. Happens every darn time.