Germany's DHL to cut 8,000 jobs this year after annual operating profit falls 7.2%
The job cuts, representing more than 1% of the total workforce, will occur in the Post & Parcel Germany division
DHL unveiled plans on Thursday (Mar 6) to lay off about 8,000 jobs this year as part of a strategy to save more than 1 billion euros (S$1.43 billion) by 2027, after the German logistics giant reported a 7.2 per cent fall in annual operating profit.
The job cuts, representing more than 1 per cent of the total workforce, will occur in the Post & Parcel Germany division and are part of the company’s “Fit for Growth” programme, which is expected to fully take effect by the 2027 financial year.
DHL Group employs approximately 602,000 people in more than 220 countries and territories worldwide, according to a company statement. It employs 190,000 people in the Post & Parcel Germany unit.
“We expect the global political and economic situation to remain volatile in 2025,” DHL CEO Tobias Meyer said in a statement.
DHL, which operates Deutsche Post in Germany, logged 5.89 billion euros in 2024 earnings before interest and tax (EBIT) in a challenging economic environment, ahead of analysts’ expectations of 5.81 billion euros in a company-provided consensus.
For 2025, the group expects an operating profit of more than 6 billion euros, which is below analysts’ expectation of 6.29 billion euros.
The forecast does not account for potential impacts from changes in tariff or trade policies, the company said.
The company continues its policy on investor returns by proposing a stable dividend of 1.85 euros per share and increasing the share buyback programme launched in 2022 by 2 billion euros to up to 6 billion euros and extending it until 2026. REUTERS
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