DHL to Cut 8,000 Jobs in Germany Amid Regulatory Challenges and Falling Demand

Germany’s DHL is cutting 8,000 jobs, marking its largest workforce reduction in two decades. The move responds to falling letter volumes and strict regulations that limit postage price increases. Despite these cuts, DHL shares surged 12.3%, with the company aiming to save over €1 billion by 2027.

CEO Tobias Meyer stated that higher postage prices were not enough to offset regulatory constraints. The Verdi labor union criticized the layoffs, calling for government intervention. The cuts represent 1.3% of DHL’s global workforce, in which Germany holds a 16.99% state stake through KfW.

Industry analysts expect slower profit growth across logistics due to weaker demand and easing supply-chain disruptions. HSBC’s Parash Jain predicts cost-cutting measures across transportation companies, with container trade and air freight growth set to halve in 2025.

Despite a 7% decline in 2024 earnings, DHL still beat expectations. The company forecasts €6 billion in operating profit for 2025, below analyst estimates. DHL also expanded its share buyback program to €6 billion.

As global trade shifts, importers of alcohol, food, and beverages should monitor logistics costs and potential trade policy changes that could impact supply chains.

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