Deutsche Post to cut 9,500 jobs

Special Report:Global Financial Crisis

BERLIN, Nov. 10 (Chinese media) -- Deutsche Post, Europe's

biggest mail carrier, announced Monday it will cut 9,500 jobs from its DHL

express mail service in the United States.

The German logistics giant will also close all of its

DHL Express service centers in America and eliminate U.S.- only domestic

shipping by land and air, the company said at its Bonn headquarters.

Deutsche Post blamed its decision on heavy losses in

the face of fierce competition in the U.S. from companies such as FedEx and

United Parcel Service. DHL's U.S. business is expected to record losses of 1.2

billion euros (about 1.5 billion U.S. dollars) this year, the company added.

The American cuts are expected to reduce operating

costs at the U.S. Express unit from 4.2 billion euros (about 5.4 billion U.S.

dollars) to less than 770 million euros (about 1 billion U.S. dollars) annually.

However, the company said the move did not mark a

complete withdrawal from America.

DHL's international express network in the U.S. will

continue operating with 3,000 to 4,000 employees. International shipping

deliveries will also remain unaffected.