DHL is set to slash around 8,000 jobs in Germany this year as part of a cost-cutting plan to save over €1 billion by 2027. The cuts, affecting over 1% of the workforce, will happen through attrition rather than forced layoffs, CEO Tobias Meyer told Reuters.
The logistics giant, facing declining profits, reported a 7% drop in annual operating earnings. Industry analysts predict weaker growth for logistics firms due to cooling demand and stabilizing supply chains. HSBC’s Parash Jain expects global container trade and air freight growth to slow even further by 2025, pushing firms to rein in costs.
Despite struggling for years with rising costs and shrinking mail volumes, DHL has no plans to spin off its Post & Parcel (P&P) division. Meyer noted that Germany’s new stamp price guidelines won’t solve these financial pressures. He also cited a recent labor deal with Verdi, which includes a 5% pay hike and more holidays, adding €360 million in costs by 2026.
While DHL’s 2024 earnings before interest and tax (EBIT) exceeded expectations at €5.89 billion, its 2025 forecast of over €6 billion falls short of analysts’ €6.29 billion projection. The outlook doesn’t factor in potential tariff or trade policy shifts.
In a bid to maintain investor confidence, DHL is keeping its 2024 dividend steady at €1.85 per share and expanding its share buyback program—adding €2 billion to the existing plan, bringing the total to €6 billion through 2026.
