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Beginning of an Epic Fall
International parcel giant DHL plans to cut approximately 9,500 jobs and drastically reduce its U.S. operations, according to The New York Times.
Over 7,000 of those job cuts will occur in Wilmington, Ohio. With a population of 12,000, the impending job cuts are slated to devastate the community and account for the largest single point job loss in the country this year.
During its entry into the U.S. market, DHL purchased rival Airborne Express and consolidated its efforts in several major distribution hubs around the country. One of the most sprawling centers is the massive facility (which includes its own airport) in Wilmington. DHL’s plan to back out of the U.S. parcel market includes the complete closing of this facility. David L. Raizk, mayor of Wilmington, said that “20 percent of the region’s businesses depended on the hub and would most likely close.”
DHL has already cut 5,400 jobs this year and expects to lose over $1.5 billion this year alone. They also plan to close facilities in Allentown, Pennsylvania and Riverside, California along with 18 regional sorting centers around the country.
While DHL has had difficulties with labor unions and organizers in the past, the simple fact remains that well-paid positions are being terminated by the thousands around this country. DHL’s move into Wilmington was largely subsidized by local and state taxpayers, and its move out of Wilmington will put even more burden on the already strained finances of the community.
With the economy in Ohio shrinking and the job market growing smaller by the day, the entry of 7,000 newly unemployed workers will make matters even more difficult for everyone else. These individuals will qualify for federal and state unemployment benefits, putting more burden on the taxpayers, while they could potentially see themselves forced to take dead end entry-level positions just to make ends meet.
The loss of DHL, with no available employment substitute, will be a sad day in Ohio. But the situation in Wilmington is but a microcosm of what is going on around the country. Layoffs are soaring and unemployment numbers continue to grow. The decline of the auto industry became apparent when the Buick plant closed in Flint, Michigan. American automakers have yet to recover. With almost zero governmental investment into useful (non-military) technological research and even less investment in education, we are becoming more dependent than ever on unsustainable career paths. Without major changes, we could be witnessing the beginning of a truly epic fall.
Over 7,000 of those job cuts will occur in Wilmington, Ohio. With a population of 12,000, the impending job cuts are slated to devastate the community and account for the largest single point job loss in the country this year.
During its entry into the U.S. market, DHL purchased rival Airborne Express and consolidated its efforts in several major distribution hubs around the country. One of the most sprawling centers is the massive facility (which includes its own airport) in Wilmington. DHL’s plan to back out of the U.S. parcel market includes the complete closing of this facility. David L. Raizk, mayor of Wilmington, said that “20 percent of the region’s businesses depended on the hub and would most likely close.”
DHL has already cut 5,400 jobs this year and expects to lose over $1.5 billion this year alone. They also plan to close facilities in Allentown, Pennsylvania and Riverside, California along with 18 regional sorting centers around the country.
While DHL has had difficulties with labor unions and organizers in the past, the simple fact remains that well-paid positions are being terminated by the thousands around this country. DHL’s move into Wilmington was largely subsidized by local and state taxpayers, and its move out of Wilmington will put even more burden on the already strained finances of the community.
With the economy in Ohio shrinking and the job market growing smaller by the day, the entry of 7,000 newly unemployed workers will make matters even more difficult for everyone else. These individuals will qualify for federal and state unemployment benefits, putting more burden on the taxpayers, while they could potentially see themselves forced to take dead end entry-level positions just to make ends meet.
The loss of DHL, with no available employment substitute, will be a sad day in Ohio. But the situation in Wilmington is but a microcosm of what is going on around the country. Layoffs are soaring and unemployment numbers continue to grow. The decline of the auto industry became apparent when the Buick plant closed in Flint, Michigan. American automakers have yet to recover. With almost zero governmental investment into useful (non-military) technological research and even less investment in education, we are becoming more dependent than ever on unsustainable career paths. Without major changes, we could be witnessing the beginning of a truly epic fall.
<------I smile because there is nothing left to do at this point but smile. At least, the Republicans have been thrown-out, and that is a good start for economic recovery in America.
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