DPD parcel service cuts red pencil
The parcel service provider DPD is also struggling with cost increases and changing consumer behavior. The Group now wants to become competitive again with a cost-cutting program. This includes cutting around one in seven jobs.
Due to poor business, parcel service provider DPD Germany is cutting back. The company announced in Aschaffenburg that up to 1400 of the current 9600 jobs are to be cut within two years. The aim is to strengthen competitiveness and regain long-term efficiency. The measures are a response to difficult market conditions, inflation-related cost increases and changes in customer behavior.
According to the company, the job cuts are to be "as socially responsible as possible". The company is aware of its responsibility, said CEO Björn Scheel. "With the upcoming transformation, we are making DPD Germany fit and agile for the coming years." The parcel industry boomed during the coronavirus years, with DPD's transport volume increasing by seven percent in 2021. However, demand weakened after the end of the pandemic.
DPD was also affected by this: in 2022, the number of parcels transported in Germany fell by 8.8 percent to 412 million. Market leader DHL had to accept a drop in shipment volumes of 8.3 percent to 1.7 billion. However, the Bonn-based company got back on track this year: in the third quarter of 2023, parcel volumes increased by 5.1 percent. DPD does not communicate any current business figures. After DHL, DPD is one of the larger parcel service providers in Germany; other competitors are Hermes, GLS and UPS.
DPD is a subsidiary of the French group Geopost, which in turn belongs to the French postal service (La Poste). In addition to the permanent employees who work at the German headquarters in Aschaffenburg, in the 79 depots and other locations throughout Germany, the company has 11,500 delivery staff, most of whom are self-employed. The abbreviation DPD originally stood for Deutscher Paketdienst. Following the entry of the French postal service, the meaning of the abbreviation was changed to "Dynamic Parcel Distribution".
Read also:
- Why there is still no EU funding for green Saar steel
- 3 billion Saar Fund is unconstitutional
- Politicians at a loss after shock news
- Court of Auditors criticizes the state government's debt plan
- DHL, being a rival in the parcel service industry, managed to recover from the post-pandemic slump, with a 5.1% increase in parcel volumes during the third quarter of 2023.
- Despite being a subsidiary of the French group Geopost and La Poste, DPD, based in Aschaffenburg, also faced challenges and decided to dismiss around 1400 employees as part of their cost-cutting program.
- In response to DPD's dismissals, the German labor market is expected to be affected, as the company aims to become more competitive and efficient in the deutsche post and parcel service sector, competing with companies like Hermes, GLS, and UPS.
Source: www.ntv.de
