In a bid to cut costs and shore up its shaky US express business which is facing immense pressure from more entrenched competitors, Fedex and UPS, DHL Express USA recently announced plans to reduce its workforce by nearly 600 employees. Th e company said the decision was made, "as part of a broader strategy to lower general and administrative costs across its US express delivery business in light of the current economic climate and market demands".

DHL Express USA CEO, Hans Hickler, said in a statement that this action is one of several measures DHL Express is taking to improve its competitive position in the US market, which is strategic to the company¡¯s global growth plan.

"These changes will help us better align our cost structure without impacting our unwavering commitment to serve our US customers," he said.

Last month, DHL dismissed speculation that it may exit the US market after it took a US$874 million non-cash write down on DHL Express operations in the country.

DHL has faced an uphill battle for market share since expanding it domestic presence in 2003 with its US$1 billion purchase of Seattle-based Airborne Express.