Deutsche Post closes 1,000 branches

Deutsche Post announced it would close 1,000 of its 13,000 post office branches and remove thousands of mailboxes from around the country. The new program is supposed to save EUR1.3 billion. The move comes in response to the European Commission ordering DP to repay EUR572 million in illegal subsidies. Interest on the sum, payable to the German government, raises the total to EUR850 million. DP was found guilty of using these monopoly profits to expand its logistics business. In addition to the EU fine, Post was forced to lower its average rates for letters and packages up to 1,000 grams (2.2 pounds) by 4 percent. DP, whose stated goal is to be one of the world’s largest logistics companies, announced that it was bundling all of its logistics and express delivery activities under its subsidiary DHL, in which it owns a 75 percent stake.