DHL Cuts 560 Jobs in Retailer Bankruptcy

DHL will eliminate 560 jobs in Germany as a result of the insolvency of German retailer Arcandor, the company announced.

The job cuts came after bankruptcy proceedings for Arcandor, the parent of department store chain Karstadt and the mail order company Quelle, officially began in Berlin last week, launching the restructuring and likely sell-off of pieces of one of Europe’s largest retail companies.

DHL parent Deutsche Post DHL said in a statement that Arcandor had sharply reduced its shipping volume because of its insolvency and that DHL was restructuring its contractual relationship with the two Arcandor divisions as it looks to retain the business if the separate units are sold off. 

"In order to remain an attractive and competitive logistics provider for a potential investor following the beginning of the insolvency proceedings, restructuring, including staff reductions at (DHL) is unavoidable. This will also help retain a large portion of the jobs connected to the company. 

DHL said it will consolidate four facilities serving the Karstadt into three, eliminating 240 jobs. It will close four Quelle logistics facilities and keep three open, cutting 320 jobs for that business. The company said it would see if workers at the sites being closed can be offered jobs elsewhere. 

A court-appointed administrator is now managing the restructuring at Arcandor, which had unsuccessfully sought state aid and employs some 40,000 people in Germany.