DHL to stop U.S. domestic-only services

International logistics and express service provider DHL has announced a repositioning of its U.S. Express business. Beginning January 30, 2009, the U.S. Express business will focus entirely on its international offerings and will discontinue its domestic-only air and ground services. However, the company will retain an international presence and capability in the United States going forward.

DHL U.S. Express will close its U.S. ground hubs, and reduce the number of stations from 412 to 103. This will result in an additional reduction of 9,500 U.S. jobs at DHL Express on top of the approximately 5,400 positions already reduced since January. The company will retain 3,000 to 4,000 U.S. Express employees, tailored to the needs of international express customers. These measures will allow DHL’s U.S. Express business to reduce its operating costs from $5.4 billion to under $1 billion, a decrease of more than 80%.

The company will maintain its international express service in the United States at current levels, and the nation will remain an integral part of DHL’s global network. All international shipments to and from the United States will still be delivered, while 99 percent will be picked up.

There will be no impact to services offered by the other DHL/DPWN businesses in the United States, such as Global Forwarding/Freight, Supply Chain/Customer Information Services (CIS), and DHL Global Mail.

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