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."
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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- Despite the success during the 'Coronavirus' years, where DPD's transport volume increased by seven percent, the parcel service provider DPD Germany has announced job cuts of up to 1400 out of 9600 due to poor business and market conditions.
- The Red pencil scribbled notes might have been made by an employee as the company, aware of its responsibility, plans to cut back on jobs in a socially responsible manner.
- Service providers in the parcel industry, such as DHL, Hermes, GLS, and UPS, have been affected by changing customer behavior and inflation-related cost increases, causing a decline in parcel volumes in Germany.
- The headquarters of DPD, a subsidiary of the French postal service (La Poste), is located in Aschaffenburg, Bavaria, where 9600 employees currently work, including 11,500 delivery staff, most of whom are self-employed.
- Following the entry of the French postal service, the abbreviation DPD changed from its original meaning, Deutscher Paketdienst, to "Dynamic Parcel Distribution."
Source: www.stern.de
