DHL’s McHugh replaced

Singapore - DHL Asia Pacific CEO Dan McHugh will be replaced by John Pearson as part of a reorganisation of the company's Express business, which could see DHL staff retrenched.

Taking McHugh's place is John Pearson, who will head up operations here as executive vice president Asia Pacific/EEMEA and chair of the customer service executive committee of the DHL Global Express Board. The move is part of a reorganisation that will see DHL Express divided into three operating areas - Asia Pacific and EEMEA, Europe and the Americas. The reorganisation will come together with structural changes within operating functions at a regional and global level, the company said, but it is yet unclear if the structuring will lead to job cuts.

"The company is reviewing suitable roles for McHugh as he works with Pearson on combining the AP and EEMEA organisations," a DHL spokesperson said.

DHL in April confirmed a wage freeze across its business units for the year, in response to tightening credit and slumping global demand. "With no clear signs of economic recovery in sight, our group will continue to take proactive measures to counter the downturn, focusing on cash management to help us through the tough times ahead. Within this context, I must advise there will be no annual salary increase in 2009," said Frank Appel, CEO DP DHL on the company's intranet.

DP DHL booked first quarter revenue losses of 12.9% to 11.5 billion euros on an "unprecedented plunge" in demand across all regions and sectors as well as reduced volumes and higher wages in the MAIL corporate division. It has set in place a cost efficiency programme that will cut at least 1 billion euros in non-operating costs by the end of 2010, the company said in a statement.