Synopsis
DHL Group plans to cut 8,000 jobs in Germany's Post and Parcel division as part of a cost-saving initiative to save up to 1 billion euros by 2025. This decision follows declining mail volumes and ongoing financial pressures.Key Takeaways
- DHL will cut 8,000 jobs in Germany.
- The initiative aims to save up to 1 billion euros by 2025.
- Revenue from Post & Parcel Germany grew by 2.7%.
- Overall revenue increased by 3.0% in 2024.
- DHL CEO acknowledges ongoing global uncertainty.
Frankfurt, March 6 (NationPress) The German logistics leader DHL Group revealed on Thursday its plan to eliminate 8,000 jobs within its Post and Parcel Germany division, which manages mail and parcels across Germany. This move is part of a larger cost-saving strategy intended to achieve savings of up to 1 billion euros (1.08 billion US dollars) by 2025.
The job cuts are aligned with the company’s 'Fit for Growth' program aimed at optimizing operations due to decreasing mail volumes and persistent financial challenges. Digitalization has notably diminished the need for postal services in Germany, impacting the business framework of Post and Parcel Germany, as per the company’s statement.
DHL disclosed that revenue from Post & Parcel Germany increased by 2.7 percent to 17.35 billion euros in 2024; however, its earnings before interest and taxes (EBIT) experienced a decline of 5.6 percent to 821 million euros. The corporation asserted that it would carry out job reductions in a socially responsible manner in 2025.
Regardless of the tough economic landscape, DHL Group's total revenue climbed by 3.0 percent to 84.19 billion euros in 2024. Nonetheless, EBIT fell by 7.2 percent to 5.89 billion euros, although this decrease was less severe than analysts had anticipated. The group’s free cash flow surpassed expectations, hitting 3 billion euros.
DHL concluded the year on a high note, reporting a robust fourth quarter with 6.4 percent sales growth to 22.7 billion euros, while EBIT surged 12.9 percent to 1.9 billion euros, as reported by Xinhua news agency.
Looking forward, DHL CEO Tobias Meyer recognized the persistent global uncertainty but reaffirmed the company’s dedication to growth amid market fluctuations. "We anticipate the global political and economic landscape will remain unpredictable in 2025. Nonetheless, we aim to sustain growth in this context and are concentrating on the aspects we can influence," Meyer commented.
