Deutsche Post is poised to reveal bigger cuts than expected to its troubled DHL US express deliveries service on Monday after the rapid economic downturn complicated efforts to restructure the lossmaking business.

The German logistics company has for months been in talks with UPS, its industry rival, to agree a contract that would see UPS handle DHL’s air business within the US. The cost-cutting measure was intended as part of a €2bn ($2.6bn) restructuring plan along with cuts of about 30 per cent in DHL’s ground-based operations within the US.