alstry (35.71)

Now.....the Prime Cuts

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.