DHL Group Plans 8000 Job Cuts in Germany by 2027

DHL has announced plans to cut about 8,000 jobs in Germany this year, mostly from its Post and Parcel division in Germany due to declining volumes of postal traffic.

The move is part of a strategy to save more than US$1.1 billion by 2027. The DHL Group reported a 7% fall in annual operating profit. Meanwhile, DHL shares jumped by around 10% in response to the news.

As expected, the Verdi union has criticised the job cuts and called for politicians to do something. The union blamed regulations and insufficient stamp price increases.

In an interview with Reuters, DHL CEO Tobias Meyer said that the pay increase agreement signed with the Union on March 4 this year is costing the group US$390 million 2026 and was the primary reason for the job cuts. DHL CFO Melanie Kreis said the company does not expect any conflict with Verdi.

Logistics companies are likely to see slower profit growth this year due to softening demand and easing supply-chain disruptions. Growth this year in air and sea cargos is expected to half of that seen in 2024.

Read More: DHL Group Profits Down 7% to US$6.3 Billion in 2024