DHL to End U.S. Ground and Air Domestic Operations
DHL Express said Monday it will end its U.S. domestic services in January and focus on its international shipping business.
As part of the move, which will reduce its U.S. operating costs by more than 80%, DHL said it will close its U.S. ground hubs and reduce the number of stations from 412 to 103.
Beginning Jan. 30, DHL’s U.S. Express business will focus entirely on its international offerings and will discontinue its domestic-only air and ground services, but the company said it will keep a “strong international presence and capability” in the United States.
DHL will cut 9,500 U.S. jobs on top of the approximately 5,400 positions already reduced since January, and will retain 3,000 to 4,000 U.S. employees in its Express unit, tailored to the needs of international customers, the company said.
“This is the right move for our U.S. Express operations given the current economic climate and for the long run,” John Mullen, chief executive officer of DHL Express said in a statement.
“Focusing our U.S. Express efforts on what we do better than anyone else — international shipping — serves the best interests of our customers, employees and shareholders around the world,” he said.
The announcement was made this morning at a press conference held in Bonn, Germany, by DHL’s parent company Deutsche Post World Net.
DHL earlier this year cited U.S. market weakness as hurting its bottom line, and had set up an arrangement with competitor UPS Inc., under which UPS would handle its North American air shipments.
DHL Americas is ranked No. 3 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
