Germany's DHL plans to cut 8,000 jobs in Germany this year, the biggest staff reduction programme in its home market in at least two decades, responding to falling letter volumes as well as what it says is overly strict regulation.
Shares rose to their highest level since February 6, 2024, on the news, which includes savings of more than 1 billion euros ($1.1 billion) by 2027. At 1415 GMT, shares were up 12.3%, the biggest gainer among German blue-chip stocks. CEO Tobias Meyer said that even though DHL raised letter postage prices recently, it wasn't enough to shore up earnings due to limits set by German regulators. The Verdi labour union criticised the planned job cuts and urged politicians to act, also blaming regulation and insufficient stamp price increases. The planned cuts account for just 1.3% of the global workforce of DHL, in which Germany still holds a 16.99% stake.
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