We've had "recessions" before, but how many of them reduced the number of shipping services available by 1/4?

DHL is one of the big ones, after US Postal Service, UPS, and Fedex.


DHL cuts 9,500 U.S. jobs
Delivery firm to end U.S.-only operations, will continue

By Aaron Smith, CNNMoney.com staff writer
Last Updated: November 10, 2008: 9:06 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.

In a press release, 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 U.S. by Jan. 30 "to minimize future uncertainties."

DHL's 9,500 job cuts are on top of 5,400 job cuts announced earlier this year. After these cuts, some 3,000 to 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."

The U.S. job market has been bleeding jobs all year. The Labor Department said nearly 1.2 million jobs were lost in the first 10 months of this year, with 240,000 jobs lost in October alone.