Monday, November 10, 2008 - 9:31 AM EST | Modified: Monday, November 10, 2008 - 9:44 AM
DHL to drop domestic shippingAtlanta Business Chronicle
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DHL announced Monday morning that beginning Jan. 30, it will close U.S. ground hubs and focus on international shipping in the United States.
DHL’s parent, Deutsche Post World Net, said in a news release that it will close its U.S. ground hubs, reduce its stations to 103 from 412, and eliminate an additional 9,500 jobs. It didn't provide details on the fate of specific operations.
Earlier this year, DHL Express reported plans to use Atlanta-based United Parcel Service Inc. (NYSE: UPS) for its U.S. cargo operations. The company had said in May that it would scale back its U.S. parcel delivery operations and outsource its U.S. air cargo operations to UPS’ hub in Louisville, Ky., but the Monday announcement indicates the two shippers were not able to reach an agreement.
The job-cut toll will likely be high in Wilmington, Ohio, where ABX Air and ASTAR Air Cargo currently provide air cargo transport services for DHL, and ABX operates DHL’s privately owned airport, Wilmington Air Park.
“This is the right move for our U.S. Express operations given the current economic climate and for the long run,” said John Mullen, global CEO for DHL Express, in the release.
Looks like they are going back home and shutting down just about everything!
