Deutsche Post is set to eliminate 8,000 jobs in Germany by the end of the year, affecting its letter and parcel operations, which currently employ around 187,000 people. The cost-cutting measure is part of a broader austerity program intended to save more than €1bn, as the group grapples with rising costs amid a significant decline in letter volumes due to digitalization. While parcel volumes have increased, the overall downturn in traditional mail has forced the postal service to streamline operations.
The job cuts are designed to be implemented in a socially acceptable manner, following the recent two-year collective agreement with the Ver.di union covering around 170,000 postal and logistics workers. Despite this agreement, which includes modest pay increases and additional vacation days, smaller unions like DPVKOM have strongly criticised the decision, arguing that it will exacerbate existing staffing shortages and further strain employees who are already overworked.
The financial pressure on Deutsche Post is evident: although sales grew by 3% to €84.2bn last year, the operating profit (EBIT) fell by 7.2% to €5.9bn. This decline has prompted management to take decisive steps to become leaner and more efficient.
The announcement comes amid broader challenges in the logistics and postal sector, as digital communication continues to erode the traditional mail market. While Deutsche Post plans to pay out €2.1bn in dividends, the job cuts highlight the tough trade-offs in a more competitive market.
