CALIFORNIA – DHL Supply Chain notified the California Employment Development Department (EDD) that it would be laying off 346 employees effective August 31.
The company is permanently closing its Ontario package handling facility.
“In a May 7 email to the Southern California News Group, DHL spokeswoman Marcia McLaughlin attributed the warehouse closure and job cuts to a client that will be relocating a part of their distribution operations,” the Orange County Register reported.
DHL plans on reducing costs to save a billion euros
The Germany-based company recently announced a plan to save a billion euros, stay competitive, and handle changing trade rules.
DHL Group CEO Tobias Meyer said the first quarter of 2025 was shaped by US trade policies and economic caution.
“Nevertheless, we continued the positive momentum of the previous quarters with slight revenue and earnings growth. This is also the result of our stringent cost and yield management,” said Meyer.
The company announced its “Fit for Growth” program in March, part of a Strategy 2030 to make the company ‘leaner and more efficient overall.’
It plans to save over €1 billion through the program, with the full savings expected by 2027.
DHL is also investing €2 billion in its “DHL Health Logistics” brand by 2030 to meet growing healthcare industry demands, including medicines, medical devices, clinical trials, biopharma, and gene therapies.
WARN report allows workers time to prepare for employment loss
DHL notified EDD of the mass layoffs through a Worker Adjustment and Retraining Notification (WARN) report.
The report provides detailed information on employment layoffs and closures.
Under the WARN Act, employers with 100 or more employees must give a 60-day notice before any plant closing or mass layoffs. This allows workers and their families time to prepare for employment loss.
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