9,500 jobs go in DHL restructuring

(CNN) -- German logistics giant Deutsche Post said Monday it was cutting 9,500 jobs as part of a major program to restructure its loss-making DHL delivery service in the United States.

Deutsche Post said it would discontinue its U.S. ground and air delivery operations based out of Wilmington, Ohio, following an outsourcing agreement with UPS.

DHL Express will continue to operate between the United States and other nations, the company said in a statement.

DHL's 9,500 job cuts are on top of 5,400 job cuts announced earlier this year.

The statement said DHL was shutting down all ground hubs and reducing its number of stations to 103 from 412.

The company said it was making the cuts to improve profitability and "to prepare the company for the economic challenges ahead." DHL Express is owned by the German company Deutsche Post World Net.

Officials in Ohio had been hoping to prevent layoffs.

State senator Sherrod Brown sent a letter Sunday to DHL Express Chief Executive Officer John Mullen and urged employment officials in Washington for emergency funds to assist workers and communities affected.

In May, Deutsche Post announced plans to outsource air services with UPS. Brown says the plan would mean shutting down DHL's hub in Wilmington and cutting at least 8,000 jobs. Brown testified at two congressional hearing this year that centered on the proposal.

Prior to the announcement, Wilmington Mayor David Razik said he was preparing for the worst.

"Given the state of the economy and the world wide economic collapse we know it can't be good news," he told CNN Sunday night. "Freight is down significantly, DHL is losing customers, they have laid off sales personnel in other locations. We really think it's certainly not going to be good for Wilmington."