Freight forwarder DHL Group will cut 8,000 jobs by 2025
On March 6, DHL Group released its 2024 results, with full-year revenue of 84.2 billion euros (about 90.9 billion US dollars), an increase of 3.0%. Earnings before interest and tax (EBIT) were 5.9 billion euros (about $6.4 billion), down 7.2% year on year.
DHL Group highlighted that the EBIT for 2024 was much higher than pre-pandemic levels, and the EBIT for 2019 was 4.1 billion euros (about $4.4 billion).
Among them, the global freight forwarding business achieved revenue of 19.6 billion euros (about 21.2 billion US dollars) in 2024, an increase of 1.8%; EBIT was 1.1 billion euros ($1.2 billion), down 24.5 percent year-on-year.
DHL Group analysis said that the freight market in 2025 is highly dependent on economic development, given the uncertainty of the market situation, it is difficult to predict. In the air and sea sector, moderate demand growth is expected. At the same time, the situation in the Red Sea is still an important factor affecting the maritime market, and if the situation continues, it will lead to a shortage of capacity. In addition, there is growing uncertainty about countries' tariff policies.
Tobias Meyer, CEO of DHL Group, explained that "Fit for Growth" is a major project for DHL Group worldwide. In addition, the DHL Group is focusing on the advancement of automation and digitalization in all business operations, as well as the integration of artificial intelligence into customer service efforts.
Regarding the layoffs, Mak Tao-yuan said that the business model has been facing major challenges, in 2022 to 2024, the business volume fell by 20.3%, while also facing rising inflation, labor union demands for wage increases, the government set price restrictions and other difficulties. He stressed: "While the parcel business is profitable and growing, it cannot compensate for the decline in the postal business and continued cost pressures. In view of the above, it is essential to stabilise the profitability of the sector to ensure its future sustainability."
It is understood that the DHL Group has about 602,000 employees in more than 220 countries and regions around the world, including about 190,000 employees in the Deutsche Post parcel business.
In 2024, Deutsche Post's parcel business generated revenue of 17.3 billion euros (about $18.7 billion), an increase of 2.7%. EBIT was €800 million ($900 million), down 5.6% year-on-year.
Looking ahead, Mai Tao-yuan believes that the macroeconomic environment in 2025 will remain sluggish, economic uncertainty and volatility will continue, and a key issue is trade barriers. DHL Group is expected to generate revenues of 60 billion euros ($64.8 billion) or more in 2025.
DHL Group highlighted that the EBIT for 2024 was much higher than pre-pandemic levels, and the EBIT for 2019 was 4.1 billion euros (about $4.4 billion).
Among them, the global freight forwarding business achieved revenue of 19.6 billion euros (about 21.2 billion US dollars) in 2024, an increase of 1.8%; EBIT was 1.1 billion euros ($1.2 billion), down 24.5 percent year-on-year.
DHL Group analysis said that the freight market in 2025 is highly dependent on economic development, given the uncertainty of the market situation, it is difficult to predict. In the air and sea sector, moderate demand growth is expected. At the same time, the situation in the Red Sea is still an important factor affecting the maritime market, and if the situation continues, it will lead to a shortage of capacity. In addition, there is growing uncertainty about countries' tariff policies.
Tobias Meyer, CEO of DHL Group, explained that "Fit for Growth" is a major project for DHL Group worldwide. In addition, the DHL Group is focusing on the advancement of automation and digitalization in all business operations, as well as the integration of artificial intelligence into customer service efforts.
Regarding the layoffs, Mak Tao-yuan said that the business model has been facing major challenges, in 2022 to 2024, the business volume fell by 20.3%, while also facing rising inflation, labor union demands for wage increases, the government set price restrictions and other difficulties. He stressed: "While the parcel business is profitable and growing, it cannot compensate for the decline in the postal business and continued cost pressures. In view of the above, it is essential to stabilise the profitability of the sector to ensure its future sustainability."
It is understood that the DHL Group has about 602,000 employees in more than 220 countries and regions around the world, including about 190,000 employees in the Deutsche Post parcel business.
In 2024, Deutsche Post's parcel business generated revenue of 17.3 billion euros (about $18.7 billion), an increase of 2.7%. EBIT was €800 million ($900 million), down 5.6% year-on-year.
Looking ahead, Mai Tao-yuan believes that the macroeconomic environment in 2025 will remain sluggish, economic uncertainty and volatility will continue, and a key issue is trade barriers. DHL Group is expected to generate revenues of 60 billion euros ($64.8 billion) or more in 2025.
