High costs have pushed Deutsche Post to cut thousands of jobs by the end of the year, the company said.

Some 8,000 of the 187,000 people working for Germany’s mail service Deutsche Post as letter and package carriers will see their jobs cut this year, the company said on Thursday.

Deutsche Post said the cuts would be carried out in a “socially responsible” manner and were part of an even broader cost-cutting program that includes the logistics giant DHL Group, which employs about 600,000 people worldwide. 

“The job cuts will happen via natural fluctuation,” Tobias Meyer, the chief executive of the DHL Group, told the Reuters news agency. 

The plan is expected to generate savings of €1 billion ($1.1 billion).

The move comes as the company reported that revenues increased 3% to €84.2 billion and operating profit fell 7.2% to €5.9 billion. 

Job cuts follow deal for pay raise

Last year “the number of traditional, document-carrying letters continued to decline,” DHL said in a statement.

The long-term reduction in letter volumes contributed to the company’s Post & Parcel Germany division reporting an operating result drop of 5.6% to €821 million even as turnover increased 2.7% to €17.3 billion. 

Despite increased revenues from parcels, this could not “compensate for the declining mail volumes and rising costs,” the statement added.

The job cuts come after workers reached a bargaining agreement this week that will see raises rise by 2% in April and another 3% in April 2026.

While business areas such as express shipping and supply chain services have performed strongly, the economic downturn and persistent geopolitical tensions are affecting their growth.

“We expect the global political and economic situation to remain volatile in 2025,” said Meyer.