Type
Internal restructuring
Country
World
Region
Location of affected unit(s)
Wilmington, USA
Sector
Transportation / Storage
Warehousing And Support Activities For Transportation, Postal And Courier Activities
Warehousing And Support Activities For Transportation
52.24 - Cargo handling

4,000 jobs
Number of planned job losses
Job loss
Announcement Date
30 May 2008
Employment effect (start)
Foreseen end date

Description

The express mail delivery and logistics company DHL, a division of Germany's postal giant Deutsche Post AG, is reducing its main freight hubs to two. This will lead to a growth of marginal jobs in Germany and severe job cuts in the USA.

After closing its operations in Brussels, Belgium, DHL inaugurated its principle European hub at Leipzig-Halle airport in eastern Germany on Monday, 26 May. Two days later the company announced plans to close its principle American hub at freight airport Wilmington/Ohio. The company plans to reduce its main hubs to two, one in Leipzig and another in Hongkong.

In 2004, Deutsche Post had already announced the planned move from Brussels to Leipzig saying that the Belgian capital refused to permit additional nighttime flights. DHL added that besides being able to operate around the clock in Leipzig, the central European location was ideal as a hub for emerging markets in Eastern Europe and Asia. At present DHL already operates flights to the Middle East and India from Leipzig-Halle, where it plans to increase its personnel from about 2,000 to 3,500 employees by 2012.

On May 29 DHL announced to restructure its freight airport at Wilmington/Ohio. According to Süddeutsche Zeitung, the hub will be closed. 4,000 DHL jobs are at stake plus another 1100 pilot jobs. Three years ago, DHL had invested EUR 300 million in what the company called 'the biggest private airport of the US'. According to Sueddeutsche, the plans forsee cooperation with competitior UPS. UPS shall take over all American DHL operations.


Sources

Citation

Eurofound (2008), DHL, Internal restructuring in World, factsheet number 66679, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/66679.