The international mail carrier Deutsche Post, or DHL, plans to cut another 9,500 jobs in the United States because of heavy losses in its express delivery operations.
In a statement released Monday, the German-based company said its Express business in the U.S. will stop domestic air and ground services and focus entirely on international shipping.
DHL U.S. Express will close its U.S. ground hubs, and reduce the number of stations from 412 to 103.
The company says the changes will reduce its operating costs by about 80 percent, from $5.4 billion to less than $1 billion.
DHL has said its U.S. operations are on track to lose at least $1.5 billion by the end of the year.
The company's financial troubles reflect a general downturn in the international shipping industry as the global economic crisis slows demand for exports.
The Financial Times newspaper reports Monday ship owners are giving up tens of millions of dollars in deposits to cancel contracts to buy vessels that would not give them enough financial return.
The newspaper says one of the industry's sharpest downturns spurred the cancellations, freeing up "badly needed cash" that would have gone to pay for the new ships.
The United Nations released a report last week saying a key measure of demand for trade, which tracks shipping costs, has fallen dramatically over the past few months.