Services - DPD parcel service plans to cut around one in seven jobs
The parcel service provider DPD Germany is cutting back due to poor business. The company announced on Thursday 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."
Weaker demand after the end of the pandemic
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% 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".
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- In contrast to DPD, DHL managed to increase their parcel volumes this year, with a 5.1% increase in the third quarter of 2023.
- Despite the job cuts, DPD has a large workforce across Germany, including permanent employees at the Aschaffenburg headquarters and self-employed delivery staff in the 79 depots and other locations.
- The poor business conditions affecting DPD are not unique to the parcel service provider as market leader DHL also experienced a drop in shipment volumes of 8.3% in 2022.
- Located in Aschaffenburg, Bavaria, DPD Germany announced plans to cut up to 1400 jobs over the next two years to strengthen competitiveness and regain long-term efficiency.
- DPD offer services throughout Germany and is one of the larger parcel service providers in the country, with competitors such as Hermes, GLS, and UPS also operating in the market.
Source: www.stern.de
