DEUTSCHE POST WARNS OF 10,000 JOB CUTS FOLLOWING PRICE REGULATION
Deutsche Post World Net, the German postal and logistics group, warned on Wednesday that it may have to cut about 10,000 jobs if a proposed regulation of the mail sector in Germany is introduced.
The Regulatory Authority for Telecommunications and Posts has announced an intended decision for the price regulation of the mail sector that would cap price increases or lead to price decreases if inflation falls below 1.8 percent.
The German group estimates that the decision would reduce its revenues and earnings by about 1.5 billion euro (about $1.5 billion) over the period from 2003 to 2007.
Deutsche Post said that it will make every effort to lower its operational expenses “to safeguard its future prospects.”
“Actions taken may involve price increases for certain products, closure of post offices and a reduction of the Deutsche Post AG workforce by around 10,000 employees,” it said.