DHL to leave local markets

DHL said it will cease its U.S. air and ground services, instead focusing U.S. operations on its logistics and import/export business, effective Jan. 30, 2009.

“Focusing our U.S. Express efforts on what we do better than anyone else — international shipping — serves the best interests of our customers, employees and shareholders around the world,” says John Mullen, Global CEO of DHL Express.

DHL U.S. Express will close 309 of its 412 service hubs, cutting 9,500 jobs. Between 3,000 and 4,000 employees will remain to serve the continuing operations, DHL said. Annual operating costs will drop from $5.4 billion to under $1 billion.

The company's international express service will continue at current levels, and all international shipments to and from the U.S. will still be delivered, while 99% will be picked up.