This step is part of its strategy to save more than € 1 billion.
The German logistics giant DHL on Thursday announced a cut in around 8,000 jobs in Germany, which is as part of its costing initiative with the aim of reducing expenses of over € 1 billion by 2027. The decision follows the company’s fall in operating gains for the previous year.
Job cuts representing more than 1% of DHL’s total workforce will mainly affect the post and parcel (P&P) division in Germany. However, the company hopes that the CEO Tobias Mayor said that the company is cut through natural attraction instead of forcibly trimmed.
Industry challenges and economic approach
Logistics firms have estimated the recession this year due to generalization of revenue and weak demand.
Pars Bars Jain, head of Transport and Logistics Research in HSBC, has predicted that global container trade and air cargo growth will slow down by half in 2025.
In 2024, DHL reported an earnings of € 5.89 billion and earning before the Taxes, which was 7.2% year-to-year decline. Despite this, the figures crossed the expectations of an analyst of € 5.81 billion. The company’s revenue increased from € 81.8 billion to 3% to € 84.2 billion in 2023.
For 2025, the DHL is more than an operational benefit of more than € 6 billion, lower than expectations of € 6.29 billion of analysts. This forecast is not responsible for possible effects from customs or changes in trade policies.
DHL has proposed a dividend of € 1.85 per share for 2024 and plans to increase its share buyback program – which has been introduced by an additional € 2 billion in 2022, which has increased to a total of € 6 billion by expanding the program by 2026.
