SBD/Issue 41/Sponsorships, Advertising & Marketing

DHL Cutting 9,500 Jobs, Status Of Sports Portfolio Unknown

Germany-based DHL yesterday said that it will leave the "U.S. domestic-only express" delivery business on January 30, a move that will "cost 9,500 positions across" the country, according to Doreen Hemlock of the South Florida SUN-SENTINEL. DHL, whose U.S. operations are based in Plantation, Florida, said that the job cuts will include the U.S. HQs, as well as offices in Wilmington, Ohio, Allentown, Pennsylvania, and Riverside, California, among others. DHL said that it will "continue to offer express delivery service to and from" the U.S., but that it can "no longer afford to lose billions of dollars on U.S. domestic-only air and ground services competing head-on with U.S. market leaders UPS and FedEx." DHL does about $3.5B in U.S. domestic-only business (South Florida SUN-SENTINEL, 11/11). Ohio Gov. Ted Strickland yesterday noted that about 7,000 jobs in the Cincinnati area are in "direct peril" as a result of the planned job cuts (CINCINNATI ENQUIRER, 11/11). DHL, which has planned to "have UPS handle its shipments within the U.S.," said that it "plans to go ahead with a UPS deal on a much smaller scale than the originally announced value of up to" $1B annually (COLUMBUS DISPATCH, 11/11).

SPORTS SHORTS: DHL boasts a robust sports marketing portfolio in the U.S., most notably its current four-year partnership with MLB, which was extended prior to the '07 season. The following lists some of DHL's sports sponsorships (THE DAILY).

Cleveland Indians
L.A. Dodgers
Baseball HOF
N.Y. Mets
Atlanta Braves
N.Y. Yankees
Boston Red Sox
S.F. Giants
Chicago White Sox
NHRA driver Scott Kalitta
Cincinnati Reds
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