DHL announced job cuts this year as part of a plan to reduce costs by €1 billion, citing the decline in traditional mail and the impact of rising expenses, particularly salaries due to union agreements. Despite an increase in parcel revenues, these gains did not offset losses in their traditional business. A recent pay deal provided workers with a 5% wage increase and more holidays, leading to concerns about the necessity for further cost-cutting. Last year, DHL's net profits fell 9.3%, signaling ongoing financial challenges, despite a 3% revenue increase.
In light of rising costs and declining mail volumes, DHL announced job cuts to achieve €1 billion in cost savings, focusing on a socially responsible approach.
The decrease in traditional, document-carrying letters has been problematic amid the digital shift, with new parcel revenues failing to offset financial declines.
DHL's recent pay deal with Verdi granted a 5% pay rise and additional holidays, raising concerns from board members about necessary cost-cutting measures.
Despite a revenue increase of 3%, DHL's net profit dropped by 9.3% to €3.3 billion in 2024, highlighting the tough financial climate.
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