Job cut announcements intensify

Deutsche Post on Nov 11 said that it was closing most of its US air and ground business as the delivery services in the face of a severe economic slump in the world's largest economy. Deutsche Post said it will allow DHL to serve overseas clients from the US, but the group said it no longer will deliver US packages domestically effective Jan. 30. The move will lower its cost base from around US$5.4bn to US$1bn, though the restructuring will cost US$3.9bn, up from US$1.9bn. DHL's 13,000 employees will be reduced to between 3,000 to 4,000, and 412 stations will be reduced to 103.

Telecom major Nortel Networks announced that it will slash 1300 more jobs, including key management positions, and freeze salaries after posting a US$3.4bn third-quarter loss. The news sent Nortel's stock plummeting 38 cents or 25.5% to US$1.11 on the Toronto Stock Exchange - the lowest level ever. BT Group said it was to cut 10,000 jobs by April as it tries to slash costs in the face of the looming recession. Royal Bank of Scotland will cut around 3000 jobs worldwide over the next several weeks to reduce costs amid the global financial crisis. Citigroup is cutting at least 10,000 jobs in its investment bank and other divisions.