Deutsche Post DHL is cutting some 560 logistics jobs due to the insolvency of major customerArcandor but is reportedly looking at various private European mail operators.
The German group said it aims to reduce 560 of the 4,000 jobs involved in supply chainactivities for Arcandor, the parent holding of department store firm Karstadt and mail-orderoperator Quelle, after the two companies re-negotiated their existing long-term contracts.
Some 240 staff will go at Karstadt logistics operations in north-west Germany and a further320 jobs at Quelle parcel sorting facilities. About 3,000 DHL workers are involved in the Karstadtlogistics operation and a further 1,000 handle brochure and parcel shipping for Quelle.
Arcandor was legally entitled to cancel and re-negotiate the contract terms because of itshighly-publicised insolvency. The company will be broken up, and buyers are being sought for bothKarstadt and Quelle.
According to earlier information, the two contracts were each worth about €500 million ayear. In 2005, Deutsche Post DHL bought Karstadt’s distribution logistics and transportationactivities and Quelle’s large goods transportation unit in a 10-year outsourcing agreement. Inaddition, Deutsche Post DHL provides brochure and parcel deliveries for Quelle, one of its majorcustomers, across Germany.
Meanwhile, Deutsche Post is interested not only in Dutch mail company Sandd but also severalother European private mail firms, German newspaper Handelsblatt reported today, citing companysources. In other countries, Deutsche Post is interested in French operator Adrexo, DX Services inBritain, Letterbox in Finland and unnamed companies in Denmark and the Czech Republic, it wrote. Aspokesman confirmed only that the company is looking at other European mail markets.
The acquisition of Sandd, the major rival to TNT Post in its home market, would enableDeutsche Post to strengthen the position of its subsidiary Selektmail, the other major privatecompetitor in the Dutch market. Sandd’s owners, an investment firm and two banks, are in talks withDeutsche Post, France’s La Poste and other firms, Dutch media reported last week.
CEO Frank Appel said at the company’s Capital Markets Day earlier this year that DeutschePost DHL would take a cautious approach to entering other domestic mail markets in Europe but wasopen for selective low-risk market entries. “If we find financially attractive ways to invest inforeign domestic markets, then we will consider it,” he said at the time.
