Deutsche Post, Germany’s postal operator, on Wednesday warned that a decision by regulators to demand lower postal charges would dent profits and risk the loss of 10,000 jobs. RegTP, the German telecommunications and postal regulator, confirmed it would ask Deutsche Post to lower charges for some standard letters and other products to boost competition.
Read MoreThe United States operations of Deutsche Post World Net, including DHL Worldwide Express and Danzas AEI, will not be affected by massive job cuts that may be implemented by the German global mail and logistics group.
Deutsche Post warned Wednesday that it may ax up to 10,000 jobs, or 3% of its workforce, to cope with the anticipated loss of revenue following the German government’s decision to lower postage rates.
Shares of the partly-privatized company tumbled after it said the move will cut 2003 earnings by 300 million euros ($297 million) and lead to total losses of around $1.5 billion by 2007.
Germany’s Deutsche Post said Monday it will set up a mail distribution joint venture with Dutch publisher Wegener NV aiming to become the second largest player in the Dutch postal market after former monopolist TPG NV. In opening trading, TPG shares fell on the news but subsequently recouped losses as analysts said they didn’t expect any impact on the company in the short term.
Read MoreDeutsche Post (DP) expects to have a double-digit share in the Dutch postal market within the next five years, Deutsche Post’s divisional board member Herbert-Michael Zapf told reporters on Monday. DP’s share in the Dutch market is currently below five percent, he said.
Read MoreTPG NV called on the Dutch government to push for liberalisation of other European post markets amid signs European operators are cashing in on the progress in Dutch liberalisation without opening up to competition in their own markets.
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