Deutsche Post's U.S. plans threaten 40,000 jobs

Business Materials 10 November 2008 06:02 (UTC +04:00)

Some 40,000 Deutsche Post in the United States are at risk as the group steps up plans to turn round its loss-making DHL express delivery company there, a German newspaper report said on Sunday.

Citing internal sources, the Frankfurter Allgemeine Sonntagszeitung (FAS) said of the total, 20,000 of jobs were threatened directly at Deutsche Post's U.S. express unit and the other half at U.S. partner firms.

A spokeswoman for Deutsche Post, which on Monday is due to report third-quarter earnings, on Sunday declined to comment on the figures mentioned in the newspaper report.

The U.S. business has been hit by shrinking investments from businesses amid the global economic crisis.

A Deutsche Post spokeswoman had said in October that her firm was cutting its U.S. ground network capacity by 30 percent faster than planned and could take further measures if necessary.

The company in May announced a $2 billion (1.3 billion pound) restructuring programme for the U.S. express business, for which it expected to post a $1.3 billion loss before interest and tax this year.