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alstry (35.42)

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November 08, 2008 – Comments (4)

From the WSJ: 

But DHL's domestic business -- in which it was competing to transport packages within the U.S. -- is expected to be largely shuttered. It wasn't clear how many of that division's 13,000 workers will lose their jobs. The company also relies on another 27,000 contract workers.

DHL is expected to follow through on an agreement with UPS, announced in May, under which DHL would outsource the airlift, or airport-to-airport leg, of its domestic U.S. delivery business to UPS. Under the proposed deal, much of DHL's Wilmington, Ohio, operation would be shifted to UPS's air hub in Louisville, Ky.

That plan drew sharp criticism during the presidential campaign from Sens. Barack Obama and John McCain, as well as Ohio politicians, who said scaling down the Wilmington facility would cost as many as 8,000 jobs. DHL said then it was sticking with the outsourcing plan as part of a wider downsizing that has continued over the last few months. It has been significantly scaling back U.S. operations and laying off mechanics, technicians and logistics employees in the Wilmington area.

These are the kind of layoffs I have been warning about.  Entire divisions of large businesses or total companies start shutting down.  We are already at 6.5% unemployment and the major cuts haven't even started.  All of these people pay income taxes, they shop at local business who also pay taxes.......where do you think they are going to get replacement jobs???  Practially every industry is contracting at the same time.  How is government going to make up for the growing deficits????

Let's see how bad it gets before Obama comes to town.

4 Comments – Post Your Own

#1) On November 08, 2008 at 12:25 AM, milpo (76.66) wrote:

Hey Alstry, I notice that you have a high score but you are not in the top 20 list of favorite cap players.  The real economic hurricane is still offshore on the radar images.  Category 5.  Unfortunately, this perfect storm has a diameter of 7,926 miles, the actual diameter of the earth at the equator.

Heartfelt Best,

Milpo

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#2) On November 08, 2008 at 2:21 AM, dpid (88.16) wrote:

It tells you how bad the macro picture is when "republicans" wish to start Public Projects.

Though, the state of our crumbling infrastructure, it might be time to build the bridge to somewhere.

 

http://www.nytimes.com/2008/10/30/washington/30spend.html?ref=business

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#3) On November 08, 2008 at 3:20 AM, zygnoda (27.24) wrote:

There are a lot of issues, but wasn't this expected to happen?  I read a while back that DHL had major issues in the us.

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#4) On November 08, 2008 at 9:35 AM, alstry (35.42) wrote:

zy,

DHL does have a lot of issues in the US.  But so do many companies, municipalities, and individuals.

The layoff announcements started in the hundreds per....then increased to the thousands.....now we are hearing about tens of thousands per.......

You start firing a stadium full of people at a time.....it doesn't take long for the unemployment rate to become pretty impressive.

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