Associated Press
Monday, November 10, 2008

The German parent company of shipping firm DHL Express is poised to announce thousands of job cuts at its operations in the United States, possibly as early as today, according to a person familiar with the decision.

The cuts, which would affect 12,000 to 13,000 jobs, are part of a wider plan to curtail Deutsche Post's U.S. operations, including ground deliveries, and would probably affect drivers, shipping clerks and warehouse workers, said the source, who was not authorized to speak to the media. The express unit employs about 18,000 workers.

The move was not expected to signal Deutsche Post's exit from the United States, where it faces competition from UPS and FedEx.

The person said that Deutsche Post's U.S. logistics unit, which employs 25,000 people, would not be affected and that some staff at DHL would remain.

Deutsche Post did not comment yesterday.

The company said earlier this year that competition, rising fuel prices and other factors have put its U.S. DHL operations on track to lose $1.6 billion by the end of the year.

In May, Deutsche Post chief executive Frank Appel announced a radical restructuring of the U.S. operations, which have posted recurrent losses. At the time, Appel said the company's U.S. freight flights were to be taken over by UPS. Thousands of jobs could be lost at an air cargo facility in Wilmington, Ohio, if the agreement between DHL and UPS is consummated.

On Friday, the U.S. unions that represent some DHL employees and pilots who provide air service for some of DHL's shipments said they had not been informed of any forthcoming changes. But DHL scheduled a conference call with reporters for this afternoon to discuss news that was to be announced earlier in the day and answer questions about the U.S. shipping unit.