DHL to cut 600 jobs in U.S.

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DHL, Deutsche Post AG’s express delivery unit, said on Tuesday, Feb. 12, that it will cut about 600 jobs in the United States, citing the “current economic climate and market demands.” The job cuts will be “achieved through reductions, attrition and the suspension of some existing open positions,” the company said.

The cuts make up about 3 percent of DHL’s 21,000 U.S. employees. “This action is one of several measures we are taking to improve our competitive position in the U.S. market, which is strategic to our global growth plan,” said Hans Hickler, chief executive officer of DHL’s U.S. business.

Deutsche Post said in late January it would write down around about 600 million euros ($875 million) on the value of the U.S. business after abandoning a target to break even in the U.S. market in 2009. Officials at the U.S. unit said last September that slowing U.S. economic growth could dent the company’s break-even target.