Deutsche Post, Europe's biggest mail carrier, announced Monday it will cut 9,500 jobs from its DHL express mail service in the United States.
The German logistics giant will also close all of its DHL Express service centers in America and eliminate U.S.- only domestic shipping by land and air, the company said at its Bonn headquarters.
Deutsche Post blamed its decision on heavy losses in the face of fierce competition in the U.S. from companies such as FedEx and United Parcel Service. DHL's U.S. business is expected to record losses of 1.2 billion euros (about 1.5 billion U.S. dollars) this year, the company added.
The American cuts are expected to reduce operating costs at the U.S. Express unit from 4.2 billion euros (about 5.4 billion U.S. dollars) to less than 770 million euros (about 1 billion U.S. dollars) annually.
However, the company said the move did not mark a complete withdrawal from America.
DHL's international express network in the U.S. will continue operating with 3,000 to 4,000 employees. International shipping deliveries will also remain unaffected.
Source: Xinhua
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