DHL CARGO has serious problems

http://money.cnn.com/2008/11/09/news...e.ap/index.htm

DHL could see big layoffs: report
November 9, 2008: 9:13 AM ET

BERLIN (AP) -- Deutsche Post AG plans to announce a cost-saving program that could result in thousands of layoffs at its DHL cargo shipper in the United States, a German weekly reported Sunday.

Deutsche Post spokeswoman Barbara Scheil refused to comment on the report in the Frankfurter Allgemeine Sonntagszeitung, ahead of a news conference planned for Monday.

The paper reported that as many as 40,000 jobs could be threatened, roughly half of them at the DHL's U.S. Express business. DHL employs thousands at an air cargo facility in Wilmington, Ohio, whose jobs could be threatened.

Deutsche Post slashed its earnings forecasts for both 2008 and 2009 late last month, saying it expects pretax profit to fall 8 percent in the third quarter "as the global economic environment deteriorated markedly."

Tough competition from UPS (UPS, Fortune 500) and FedEx (FDX, Fortune 500) also has taken some of DHL's share of the valuable U.S. market. Reports suggest that both FedEx and UPS have taken major customers from DHL in recent weeks, including online merchants, major drug store chains and franchise businesses.

Comments: Every sector is being affected by these massive layoffs. I can't see a depression being avoided. FEDEX USPS and UPS are also laying off, this means they anticipate buyers will be not buying anything for Christmas ..looks like it could be catastrophic!