DHL Express to reduce U.S. Workforce
February 13, 2008 by Splatty
Filed under Integrators
DHL Express joins the list of recent logistics companies to reduce costs and overhead as they announce that they will eliminate 600 jobs in the United States.
DHL added that these domestic workforce reductions will occur through attrition, reductions, and suspending open positions across functional areas. DHL Express USA Spokeswoman Michele Nadeem told LM that these reductions will take place today and tomorrow.
“These reductions are for management, administrative, and back office positions,” said Nadeem. “This is across the U.S and across all levels [of the company].”
According to reports I have read, the layoffs will only apply to DHL’s Express division as their forwarding and supply chain divisions remain profitable.
There was earlier speculation that DHL would pull the plug entirely on their U.S. operation; however, at this point it looks like they will only scale back operations. DHL also recently announced a strategic partnership with Walgreen’s store nationwide to provide customers with access to DHL’s delivery services.
rodeoblonde1915 on Fri, 15th Feb 2008 8:58 pm
What does this mean for the drivers of DHL that contracted for this company? Will thay lose their jobs,too? Or will they work for Fed-Ex? Or not job at all?
3plwire on Sat, 16th Feb 2008 11:13 am
From the article in Logistics Management I think that the drivers for DHL Express are safe. It clearly states that the goal is to reduce general and administrative costs, which usually means back office and administrative support functions, not daily operations. Michele Nadeem, the spokesperson quoted in the article, even states that it is for management, administrative, and back office positions. So I think DHL drivers are safe.
peg kahl on Sat, 16th Feb 2008 10:14 pm
I read that DHL might go in partnership with Walgreens stores, does that mean i will be able to ship a package from Walgreens? As of right now there is no DHL office close to me as i live in Palm Bay Florida. Could really use a DHL service in Palm Bay Florida.
3plwire on Sun, 17th Feb 2008 11:09 am
That is correct,, according to the official news release from DHL’s website the plan is to implement a “DHL Shipping Spot” at Walgreens photo counters. It sounds like more of a pick up / drop off service rather than a full service shipping location (such as FedEx Kinko’s or UPS stores) as the official press release indicates that Walgreens employees would be responsible for weighing, labeling, and shipping customers’ DHL shipments. I would assume they would also allow customers to ship via standard envelope / package sizes as well, but that’s just a guess.