Saving one billion euros Deutsche Post cuts 8000 jobs
Deutsche Post is cutting 8,000 jobs by the end of the year. The reason: they want to reduce their costs and save more than one billion euros.
06.03.2025, 07:38
SDA
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- Deutsche Post is cutting 8,000 jobs in Germany by the end of the year.
- This relates to the letter and parcel business in Germany, where the company had around 187,000 employees at the turn of the year.
- The main reason for the cost-cutting measures is increased costs.
Deutsche Post is cutting 8,000 jobs by the end of the year. This relates to the letter and parcel business in Germany, where the company had around 187,000 employees at the turn of the year - around four percent of jobs are to be cut.
The job cuts are to be carried out in a socially responsible manner. The company explained in Bonn that it wanted to become leaner and more efficient.
The cost-cutting program also affects other areas of the globally operating logistics company DHL, which is called Deutsche Post in its national core business and has around 600,000 employees worldwide.
Increased costs are causing the Group problems: Last year, it was able to increase its turnover by 3 percent to 84.2 billion euros, but the operating result (EBIT) plummeted by 7.2 percent to 5.9 billion euros. The cost-cutting measures are expected to reduce costs by more than one billion euros.
The shoe pinches in the German business
The Post & Parcel Germany division - i.e. Deutsche Post's business - reported a turnover of around 17.3 billion euros, an increase of 2.7 percent. The operating result fell by 5.6 percent to 821 million euros.
In the digital age, letter volumes have been falling for a long time. Last year, the volume of direct mail fell significantly, as the company put it. Parcel volumes, on the other hand, increased.
Swiss Post's core business in Germany has long been a problem child for the global group, while other business areas are more lucrative - such as express shipments, which are mainly used by companies to send time-critical goods and documents.
Cautious outlook
Supply chain services and the freight business also generate more profit. However, the effects of the gloomy economy and geopolitical conflicts were also felt in these business areas.
DHL management is cautious when looking ahead. They continue to expect "a subdued macroeconomic environment". "We expect the global political and economic situation to remain volatile in 2025," said CEO Tobias Meyer.
In Germany, Swiss Post was allowed to raise letter postage rates at the turn of the year, increasing the cost of sending letters by 10.5 percent. This was not enough for Swiss Post, which wanted to increase prices even more. However, the Federal Network Agency did not allow this.
Salaries up, number of employees down
The announcement of the job cuts in Germany comes just two days after a wage agreement was reached with the Verdi trade union for around 170,000 letter carriers and women, parcel carriers and other logistics employees. The two-year collective agreement provides for an initial pay increase of two percent and a further three percent in the second year. In addition, all employees will receive an extra day's vacation and long-term employees will receive an additional day's vacation.
Following the agreement on Tuesday, the DHL board member responsible for Post & Parcel Germany, Nikola Hagleitner, said that "cost-cutting measures will have to be consistently expanded and accelerated" due to the economic environment and the wage agreement. She did not provide any further details at first. The Post management is now announcing the job cuts.
