Global package delivery company DHL will not lay off workers across Asia, even as it expects a tough 2009 and after cutting 9,500 jobs and halting domestic services at its DHL Express unit in the US, Business World reported.
DHL, owned by German firm Deutsche Post World Net, noted that while it expects the slowing global economy to affect the company, it expects to continue making money in Asian markets.
Last month, DHL said it would scale down air and ground operations in the US. The 9,500 job cuts were on top of the around 5,400 workers who lost their jobs earlier in the year.
DHL made the decision after failing for five years to gain share in a market dominated by United Parcel Service and FedEx Corp.
The group will discontinue its US domestic air and ground services on January 30, which will allow it to focus on international operations.
DHL Express will close all ground hubs in the US and cut the number of stations from 412 to 103.
In the third quarter, DHL posted consolidated net profits of US$840.7 million, 11.6 percent higher than a year earlier.
Revenues from Asian operations went up by 16 percent to $2.2 billion.
In 2007, the company posted $8.5 billion in revenues in Asia, where it operates in 41 countries.
Meanwhile, DHL’s Global Forwarding business unit in the Asia Pacific is expected to surpass the one million mark for ocean freight by the end of December 2008, for the calendar year.
CargoNewsAsia
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