To battle sliding demand in the United States, Deutsche Post now planned to shut down its domestic U.S. express business and focus on international shipping there. It would spend $3.9 billion on restructuring, $1.9 billion more than previously planned.
The U.S. DHL unit’s full-year EBIT loss would reach $1.5 billion this year, more than the $1.3 billion previously expected.
Europe’s biggest mail and express delivery company already last month cut its full-year profit outlook for this and next year, citing slowing global economic growth, which hit especially its U.S. business.
This only has meaning for some of us. Most of us only use Fed Ex or UPS. But for those of us who were forced into using DHL for one reason or another, this is good news. They did not treat their customers well.