International logistics company DHL has announced that it will close its United States ground hubs as part of the company’s decision to discontinue domestic-only air and ground services to focus on its international service.
In Wilmington, Ohio, where DHL operates an air freight hub, the decision translates into more than 7,000 jobs lost. In addition, hundreds more jobs are being cut at ABX Air, a company that operates a package sorting and shipping hub at Wilmington; DHL is the company’s primary client.
By closing its U.S. ground hubs and reducing the number of stations from 412 to 103, DHL will reduce its operating costs from $5.4 billion to under $1 billion, a decrease of more than 80 percent.
DHL has operated the hub in Wilmington since 2003, when it acquired the facility as part of its acquisition of Airborne Express.