DHL Layoffs: German Logistics Giant To Cut 8,000 Jobs Amid Profit Decline, Aims To Save 1 Billion Euros by 2027
DHL is set to cut thousands of jobs as part of its largest layoffs in two decades. The DHL layoffs will affect 8,000 employees. The logistic giant planned to save 1 billion euros by 2027 amid a decline in profits.
Bonn, March 7: DHL, a Germany-based logistics company, will reduce its workforce this year by cutting around 8,000 jobs. The upcoming DHL layoffs round is considered the biggest in two decades, and it was announced as the company underperformed, witnessing a 7.2% drop in profit. The layoffs will reportedly affect 1.3% of the global workforce, in which Germany holds a 16.99% stake via state lender KfW.
The reports suggested that the German postal giant will lay off its Post & Parcel division employees. According to the reports, DHL CEO Tobias Meyer said that DHL raised the letter postage prices recently; however, it was not enough for it to shore up earnings amid limitations by German regulators. DHL's net profit in 2024 dropped 9.3% to 3.3 billion euros, and the logistics company's revenue rose 3% to 84.2 billion euros. JioStar Layoffs: India’s Largest Media Conglomerate To Lay Off 1,100 Employees After Merger, Multiple Departments To Be Affected, Says Report.
DHL shares increased to the highest level since February 6, 2025, and the company aims to save 1 billion euros (around USD 1.1 billion) by 2027. The company's shares were up 12.3%, which was the biggest gainer in Germany among blue-chip stocks. On the other hand, Verdi was critical of the planned DHL layoffs and urged that German politicians act on them. The labour union blamed the regulations and insufficient stamp price hike.
According to the reports, due to soft demand and supply-chain disruptions, the logistics company has been seeing slower profit growth, as stated by Parash Jain, HSBC Global Head of Transport and Logistics Research. He further stated that transportation companies may cut costs amid the global container trade and halving of freight tonnes. Over the past year, DHL reportedly underperformed in the logistics sector. Reliance Retail Layoffs: Mukesh Ambani’s RRVL Reportedly Slashing Jobs Amid USD 50 Billion Loss in Valuation Before Making Stock Market Debut.
DHL (Dalsey, Hillblom, and Lynn) reportedly maintained the 1.85 euro dividend per share last year, increased its buyback programme by two to six billion euros, and extended it until 2026.
(The above story first appeared on LatestLY on Mar 07, 2025 12:20 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).