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DHL Out of Business in US

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I feel sorry for all of those folks being laid off. Been there and it pretty much sucks.

If there is a lesson here, it's that life is unpredictable and people should save money for a rainy day...I know having money in savings helped up whether the 9/11 storm.

Good luck to all those DHL folks
 
DHL cuts 9,500 U.S. jobs

Delivery firm to end U.S.-only operations, will continue shipments to other countries.

By Aaron Smith, CNNMoney.com staff writer
Last Updated: November 10, 2008: 9:17 AM ET
NEW YORK (CNNMoney.com) -- Global delivery company DHL announced Monday that it was cutting 9,500 jobs as it discontinues air and ground operations within the United States.
DHL said its DHL Express will continue to operate between the United States and other nations. But the company said it was dropping "domestic-only" air and ground services within the United States by Jan. 30 "to minimize future uncertainties."
DHL's 9,500 job cuts are on top of 5,400 job reductions announced earlier this year. After these job losses, between 3,000 and 4,000 employees will remain at DHL's U.S. operations, the company said.
The company also said it was shutting down all ground hubs and reducing its number of stations to 103 from 412.
DHL said it was making the cuts to improve profitability and "to prepare the company for the economic challenges ahead."
The company said this latest action would add $1.9 billion to its restructuring costs, for a total of $3.8 billion over two years, most of it during 2008. The company said the cuts would reduce the annual operating costs of DHL U.S. Express to less than $1 billion, from its current cost of $5.4 billion.
DHL is owned by the German company Deutsche Post World Net.
DHL's U.S. pullback should help competitors FedEx Corp (FDX, Fortune 500) and UPS Inc. (UPS, Fortune 500), said Donald Broughton, analyst for Avondale Partners.
"Obviously, it's good news for FedEx and UPS, because this puts the 3-4% market share that DHL had [for domestic ground and air shipping within the U.S.] up for grabs," said Broughton. "Makes it a jump ball, if you will."
DHL has been hammering out a deal that would extend its airport-to-airport "line haul" shipping services to competitor UPS, said Broughton. DHL spokesman Robert Mintz told CNN that the company is still "in full negotiations with UPS [and] expects to reach an agreement by the end of the year."

Ouch.
 
This wasn't a layoff was it? Sounds like these guys are shutting down with no intention of starting back up.

DHL competed on price, but they never had a market presence like UPS and FDX. With these types of operations, size matters, if you are going for the high revenue overnight shipping.

The silver lining is if these pilots get hired over at UPS and FedEx. Hopefully Delta will be hiring early 09 as well.

As they say, it is a jump ball, don't waste time, stay in the game. Good luck guys.
 
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Not much consolation there. I have a friend,8 capt making 200,000+, been there since 1992. The guy is married with 3 kids. Happy f--kin holidays!
 
Not much consolation there. I have a friend,8 capt making 200,000+, been there since 1992. The guy is married with 3 kids. Happy f--kin holidays!

Sad day. The article did not say how many pilots are being let go or planes being reduced. Are they just adding these planes into the international market?
 
That is terrible news, both for the workers, their families, and the customers who used them to ship larger packages that UPS and FedEx wouldn't take.

They had a niche business, and it's sad that it wasn't enough to keep them around.

Best of luck to everyone there, hopefully the bottom is coming soon, and everyone will find somewhere to safely land...

Fins, don't get your hopes up. FedEx has driven several freight companies out of business, and they haven't hired a single pilot unless they went through the normal screening process.

I have doubts UPS or FedEx will move to help out those pilots specifically... they don't have to.
 
Sad day. The article did not say how many pilots are being let go or planes being reduced. Are they just adding these planes into the international market?
No.

The fleet mix includes a lot of planes that can't fly in Europe. Some of them might get absorbed, but a large number of them won't.
 

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