FRANKFURT, March 6 (Xinhua) -- Germany's logistics giant DHL Group announced on Thursday that it will cut 8,000 jobs at Post & Parcel Germany, a division dealing with post and parcels in Germany, as part of a broader cost-cutting initiative aimed at saving up to 1 billion euros (1.08 billion U.S. dollars) in 2025.

The layoffs are part of the company's "Fit for Growth" program, which seeks to streamline operations in response to declining mail volumes and ongoing financial pressures. Digitalization has significantly reduced the demand for postal services in Germany, putting pressure on Post & Parcel Germany's business model, said the company.

DHL reported that Post & Parcel Germany's revenue grew by 2.7 percent to 17.35 billion euros in 2024, but its earnings before interest and taxes (EBIT) fell 5.6 percent to 821 million euros. The company said it would implement job reductions in a socially responsible manner in 2025.

Despite the challenging economic environment, DHL Group's overall revenue rose by 3.0 percent to 84.19 billion euros in 2024. However, EBIT declined by 7.2 percent to 5.89 billion euros, though the drop was smaller than analysts had predicted. The group's free cash flow exceeded expectations, reaching 3 billion euros.

DHL ended the year with a strong fourth quarter, posting 6.4 percent sales growth to 22.7 billion euros, while EBIT jumped 12.9 percent to 1.9 billion euros.

Looking ahead, DHL CEO Tobias Meyer acknowledged ongoing global uncertainty but reaffirmed the company's commitment to growth despite market volatility. "We expect the global political and economic situation to remain volatile in 2025. However, we want to continue growing in this environment and are focusing on the measures we can control," Meyer stated. (1 euro = 1.08 U.S. dollar) Enditem

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