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View Full Version : DHL Shutting down U.S. Operations...


iGary
Nov 10, 2008, 07:04 AM
Just coming in on CNN.

Yikes, that's a lot of delivery drivers, pilots and other folks without jobs.

Edit: They have yanked it off the "Breaking news" section. Hrmmm.

rdowns
Nov 10, 2008, 07:15 AM
http://www.marketwatch.com/news/story/DHL-Express-Focus-US-Business/story.aspx?guid=%7B33087DB0-161A-4EED-97D4-51711EF1A19C%7D

PLANTATION, Fla., Nov 10, 2008 (BUSINESS WIRE) -- --International shipping to/from U.S. remains intact
--Will reduce U.S. operating costs by over 80%
--U.S. stays an integral part of DHL's global network

DHL, the world's number one international logistics and express service provider, today announced a repositioning of its U.S. Express business. Beginning January 30, 2009, DHL's U.S. Express business will focus entirely on its international offerings and will discontinue its domestic-only air and ground services. However, the company will retain a strong international presence and capability in the U.S. going forward.

The announcement was made this morning at a press conference held in Bonn, Germany by Deutsche Post World Net, parent company of DHL U.S. Express.

Diatribe
Nov 10, 2008, 07:16 AM
They just made it official. They're going to shut down their entire U.S. local operation and cut 14.900 jobs.

German
Link (http://www.faz.net/s/Rub58241E4DF1B149538ABC24D0E82A6266/Doc~E6E8BC91AD2D04FEB9BF3D9EE3AE2B37C~ATpl~Ecommon~Scontent.html)

Edit: Beat me to it. And the above link is probably easier to understand for most here anyway. Gonna leave the link for those who speak German.

edesignuk
Nov 10, 2008, 07:18 AM
They're going to shut down their entire U.S. local operation and cut 14.900 jobs.Holy. S***. :eek: :(

iGary
Nov 10, 2008, 07:22 AM
They just made it official. They're going to shut down their entire U.S. local operation and cut 14.900 jobs.

German
Link (http://www.faz.net/s/Rub58241E4DF1B149538ABC24D0E82A6266/Doc~E6E8BC91AD2D04FEB9BF3D9EE3AE2B37C~ATpl~Ecommon~Scontent.html)

Edit: Beat me to it. And the above link is probably easier to understand for most here anyway. Gonna leave the link for those who speak German.

This is going to be ****** Christmas for a lot of people this year. :(

JNB
Nov 10, 2008, 07:28 AM
Was there really enough room for three intra-US delivery behemoths, anyway? Considering how much I actually saw DHL being used all over the country, I suspect the international operation must have been subsidizing the domestic US one.

iGary
Nov 10, 2008, 07:30 AM
Was there really enough room for three intra-US delivery behemoths, anyway? Considering how much I actually saw DHL being used all over the country, I suspect the international operation must have been subsidizing the domestic US one.

Apple uses(d) DHL for most if not all of their parts/service delivery. I'm sure FedEx will get that.

Diatribe
Nov 10, 2008, 07:31 AM
Holy. S***. :eek: :(

This is going to be ****** Christmas for a lot of people this year. :(

Yeah, it is really unfortunate that this comes in December. They have a $1.2 billion loss this year in U.S. operations, which is just insane. And looking at the economic crisis there are a lot of companies looking at their business right now and deciding what actions to take, even the ones that are not doing so badly. This is far from being over.

Big-TDI-Guy
Nov 10, 2008, 07:35 AM
I love the etiquette and wordplay used when cutting jobs. "Repositioning" "Dynamic Shift" and "Efficiency Improvements". :rolleyes: :mad:

SwiftLives
Nov 10, 2008, 07:45 AM
DHL slashes workforce. Circuit City files for bankruptcy.

And it's not even 9:00 yet.

Gonna be a long week.

iGary
Nov 10, 2008, 07:52 AM
Circuit City files for bankruptcy. (http://www.thestreet.com/story/10446900/1/circuit-city-files-for-bankruptcy-report.html?puc=googlefi&cm_ven=GOOGLEFI&cm_cat=FREE&cm_ite=NA)

Big-TDI-Guy
Nov 10, 2008, 07:55 AM
I thinks its time to take the hit on my 401k. :(

edesignuk
Nov 10, 2008, 07:55 AM
All this along with the GM & Ford news, crikey :(

SwiftLives
Nov 10, 2008, 07:56 AM
I thinks its time to take the hit on my 401k. :(

It's probably down to about a 0.401k by now.

On the bright side, now is the time to invest. On the downside, now is the time to invest with what, exactly?

Long week.

aristobrat
Nov 10, 2008, 08:06 AM
DHL is a surprise, but Circuit City's been tanking for a long, long time.

It sucks that these folks are all losing jobs (esp. right before the holidays), but it double-sucks that Circuit City is announcing bankruptcy today, which will undoubtedly be attributed to the recent 'economic crisis', when their problems have been going on for the last few years.

iGary
Nov 10, 2008, 08:40 AM
DHL is a surprise, but Circuit City's been tanking for a long, long time.

It sucks that these folks are all losing jobs (esp. right before the holidays), but it double-sucks that Circuit City is announcing bankruptcy today, which will undoubtedly be attributed to the recent 'economic crisis', when their problems have been going on for the last few years.

Going into bankruptcy right before the holidays spells the end of Circuit City, in my opinion. They have no cash, their stock is almost worthless and they have a ton of liabilities outstanding.

rdowns
Nov 10, 2008, 08:46 AM
Going into bankruptcy right before the holidays spells the end of Circuit City, in my opinion. They have no cash, their stock is almost worthless and they have a ton of liabilities outstanding.

According to what I've read, they had no choice. They owe their creditors huge sums ( HP at $118M, Samsung at $116M, Sony at $60M, Zenith at $42M, Toshiba at $18M) and needed to do something to get inventory into their stores.

aristobrat
Nov 10, 2008, 08:51 AM
Going into bankruptcy right before the holidays spells the end of Circuit City, in my opinion. They have no cash, their stock is almost worthless and they have a ton of liabilities outstanding.
I agree. :( What's crazy is that Best Buy has stated that they'd consider buying some of Circuit City's closed locations. Amazing how two companies in the same retail space can be having such opposite experiences.

iGary
Nov 10, 2008, 08:59 AM
According to what I've read, they had no choice. They owe their creditors huge sums ( HP at $118M, Samsung at $116M, Sony at $60M, Zenith at $42M, Toshiba at $18M) and needed to do something to get inventory into their stores.

No choice, I agree, but I think they're done for. Kramer basically said "anyone without cash in the bank going into this holiday season is in trouble."

I think I believe him.

rdowns
Nov 10, 2008, 09:04 AM
No choice, I agree, but I think they're done for. Kramer basically said "anyone without cash in the bank going into this holiday season is in trouble."

I think I believe him.

They have secured a $1.1 billion loan to provide working capital while reorganizing. Apparently, credit must not be that tight.

Horvers added, "I think it's encouraging that they were able to secure financing." Circuit City said it had lined up $1.1 billion in loans to provide working capital while it is in bankruptcy protection. That replaces a $1.3 billion asset-backed loan it had been using.

Loans to operate while in bankruptcy are called debtor-in-possession, or DIP, loans.

"That's a big DIP in the current market," said John Penn, a partner at Haynes & Boone who is not involved in the case. "To secure that size DIP now is quite a achievement. With the news of the cuts last week -- and vendors wanting to know they can get paid -- having a recognizable source like a DIP can calm a lot of vendor concerns."

The company said in its filing that it had $3.4 billion in assets and $2.32 billion in liabilities, as of Aug. 31

iGary
Nov 10, 2008, 09:05 AM
They have secured a $1.1 billion loan to provide working capital while reorganizing. Apparently, credit must not be that tight.

Someone has $1.1 billion they wanna write off. :p

I still think they'll go buh-bye. I hope I am wrong for the sake of all the employees. :(

Abstract
Nov 10, 2008, 09:13 AM
Someone has $1.1 billion they wanna write off. :p


Well someone (i.e. your government) has far more money going towards GM, and that isn't exactly really a sound investment either.

OutThere
Nov 10, 2008, 12:03 PM
To be fair DHL's domestic shipments market share had to be pretty small...yes Apple used them, but very few other companies. It's rare to find DHL as a shipping option buying online, and I certainly would send packages Fedex or UPS before DHL. Hell stuff that comes to my house via DHL is dropped off by a sketchy guy in his beat up chrysler minivan.

They have secured a $1.1 billion loan to provide working capital while reorganizing. Apparently, credit must not be that tight.

All this talk about the credit crunch and you see stuff like that, and Chase (unprompted) bumps my Visa's credit limit by 30%... :confused:

Antares
Nov 10, 2008, 12:21 PM
I knew something was up with DHL when, a few weeks ago, they suddenly and unexpectedly broke a contact to provide DHL shipping services at Walgreens stores. That could have been lucrative for DHL.

bombboy
Nov 10, 2008, 12:29 PM
Fed-Ex services are just so much better and freight pricing is much better. I'm surprised this hasn't happened sooner when Fed-Ex started picking up LTL companies to beef up their freight backbone. When Fed-Ex pulled that, UPS went and picked up Overnite Express to do the same. DHL was relegating small stuff and document packs more than anything by then.

gkarris
Nov 10, 2008, 12:42 PM
Our DHL guy just dropped packages off...

I work for a French company, so we use DHL for all deliveries. Our delivery guy was not a happy camper. According to him, they will cease domestic ops Jan. 30. He will be out of work. :( Not a good time for that....

We just got a memo that we will be switching to UPS as far as domestic US services, yoUr Parcel Smashed... :eek:

Around Chicago, UPS handles packages poorly and I've gotten some eBay deliveries that were irreversably damaged (antique electronics). And once a collectible is destroyed, that's it - they don't make them anymore, good luck finding another...

Big-TDI-Guy
Nov 10, 2008, 02:41 PM
I thought UPS stood for Ur Property Stolen.

Or maybe it was United Pot Smokers?

But yes, I've had some of my worst shipping experiences with UPS. And having worked there back when I was in high school - I've seen some things. :eek:

furcalchick
Nov 10, 2008, 03:29 PM
i can see why dhl is shutting down in the us. their shipping service is just plain bad. there's one company that i know of that will under no circumstances ship anything with dhl because everything they ship 'gets lost' and either arrives very late or never. we call them delivery habitually late for that reason.

Going into bankruptcy right before the holidays spells the end of Circuit City, in my opinion. They have no cash, their stock is almost worthless and they have a ton of liabilities outstanding.

circuit city has been going down the tubes for years. i remember hearing them cutting staff and rehiring them for lower wages not too long ago, and they had to shut down 155 stores lately. i would think they wouldn't announce this until after new years however.

GSMiller
Nov 10, 2008, 06:57 PM
To be fair DHL's domestic shipments market share had to be pretty small...yes Apple used them, but very few other companies. It's rare to find DHL as a shipping option buying online, and I certainly would send packages Fedex or UPS before DHL. Hell stuff that comes to my house via DHL is dropped off by a sketchy guy in his beat up chrysler minivan.

Yeah I'll admit I think I've only had one thing delivered by DHL (and if I'm not mistaken it was ordered from QVC).

Funny you should mention the thing about the beat up van, FedEx delivered my iMac in an old, white, shady looking Ford! :p They were about as gentle with the box as they are the van too :mad:

jaw04005
Nov 10, 2008, 08:06 PM
I use DHL all the time. They're much cheaper and generally faster than either FedEX or UPS in my local area.

I'm going to miss my DHL lady. She's a single grandmother raising her daughter's two children. We've sort of developed a friendship over the years.

She even delivers my ground packages on Saturday if she is working that particular weekend. :(

I'll make sure we get her a gift certificate or something nice for Christmas.

EricNau
Nov 10, 2008, 08:09 PM
A damn shame. Based on my experience, they were by far the best delievery service in America.

Schtumple
Nov 10, 2008, 09:45 PM
Christ it's litterally one major player after another at the moment, someone fancy doing a quick work out of the total jobs that will be lost from now till xmas...

Dark times we're living in.

psyduckiee
Nov 11, 2008, 12:25 PM
Our DHL guy just dropped packages off...

I work for a French company, so we use DHL for all deliveries. Our delivery guy was not a happy camper. According to him, they will cease domestic ops Jan. 30. He will be out of work. :( Not a good time for that....

We just got a memo that we will be switching to UPS as far as domestic US services, yoUr Parcel Smashed... :eek:

Around Chicago, UPS handles packages poorly and I've gotten some eBay deliveries that were irreversably damaged (antique electronics). And once a collectible is destroyed, that's it - they don't make them anymore, good luck finding another...

Hey gkarris, I know this is off topic but I can't PM you but wanted to know if you still have an incase folio for sale? Thanks!

Gray-Wolf
Nov 11, 2008, 08:16 PM
Christ it's litterally one major player after another at the moment, someone fancy doing a quick work out of the total jobs that will be lost from now till xmas...

Dark times we're living in.

The irony is, its a cascade effect. Of those let go, they loose cars, homes, exct, and their less spending effects another few companies and they have to lay off people. It looks like end times are here.

aethelbert
Nov 11, 2008, 09:18 PM
I saw this coming earlier this year when they came running to us at Lufthansa to set up a joint venture where we essentially take their cash to move stuff across the pond. One of my colleagues that does timetables for our cargo division is seeing a massive shift this week away from the United States for our shipping demand. I never really came to realize how much freight we were turning away for DHL's contract.

You can tell that something is wrong when a bunch of Germans destroy their plot to take over the world by pulling out of the world's largest internal-shipping economy.