11 Nov 2008
DHL Cuts 9,500 Jobs in U.S., and an Ohio Town Takes the Brunt

DHL lost their shirt trying to compete with UPS and FedX. Poor babies. But they're not alone in being shirtless:

The deepest cuts will be in Wilmington, where DHL built the hub in 2005 on a former Air Force base with the help of a $400 million state and local incentive package. DHL operates the hub in conjunction with Astar Air Cargo and ABX Air, both of which will most likely cease operations there when DHL leaves.

We complain bitterly about $700 billion bailouts for Wall Street, when in reality we are being bled white by these "preemptive bailouts" at the State and local level every day. We moan about GM and Ford wanting interest free government loans, but fall all over ourselves giving Honda and Toyota perpetual tax breaks and guaranteed non-union shops so they'll build their new plant in our hometown.

Until and unless we stop the practice of "incenting" companies to relocate, we'll have redistribution of the wealth for certain. From us to them.

The mail and logistics company Deutsche Post said it would close all DHL express service centers in the United States amid heavy losses.

(link) [New York Times]

08:16 /Politics | 0 comments | permanent link