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CNBC EXCLUSIVE: CNBC TRANSCRIPT: CNBC'S ERIN BURNETT AND BRIAN SHACTMAN INTERVIEW DHL CEO JOHN MULLEN, ON CNBC'S "SQUAWK ON THE STREET" TODAY

WHEN: Today, Monday, November 10 at 9:52 AM ET

WHERE: CNBC's "Squawk on The Street"

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with DHL CEO John Mullen, on CNBC'S "Squawk on the Street" Today.

All references must be sourced to CNBC.

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ERIN BURNETT: JOINING US FOR A CNBC EXC MORNING, OR THIS AFTERNOON, GLOBAL CEO OF DHL EXPRESS. MR. MULLEN, WHAT CAUSED YOU TO MAKE THIS DECISION? IS THIS DRIVEN BY THE ECONOMY?

JOHN MULLEN: IT'S PARTIALLY DRIVEN BY THE ECONOMY. I THINK IT'S NO SECRET THAT WE'VE HAD AN EXTREMELY DIFFICULT TIME OVER THE LAST FEW YEARS IN THE UNITED STATES. WITH LOSSES OVER $1 BILLION EVERY YEAR. AND NOW OF COURSE WE'RE ENTERING UNPRECEDENTED ECONOMIC TIMES BOTH IN THE UNITED STATES AND GLOBALLY AND THAT SIMPLY WAS THE FACT THAT WE HAD TO MAKE A PRUDENT DECISION TO SAFEGUARD OUR COMPANY, TO SAFEGUARD OUR OTHER EMPLOYEES, OUR SHAREHOLDERS AND OUR CUSTOMERS.

BURNETT: SO IT SOUNDS LIKE PARTIALLY THE ECONOMY, BUT IT HAD BEEN SEVERAL YEARS OF LOSSES SO, PERHAPS THE OTHER WAY TO LOOK AT IT IS, THIS IS A MARKET THAT'S DOMINATED BY TWO, AND MAYBE THREE, IF YOU COUNT THE U.S. POSTAL SERVICE PLAYER, THERE REALLY WASN'T ROOM FOR ANOTHER ONE FOR WHATEVER REASON?

MULLEN: WELL CERTAINLY THE CUSTOMER WANTED AN ALTERNATIVE CHOICE. IT IS A VERY STRONG AND POWERFUL DUOPOLY, AS YOU SAY, OF TWO VERY FINE COMPANIES THAT ARE PERFORMING VERY STRONGLY. WE'VE TRIED FOR A NUMBER OF YEARS TO BREAK INTO THAT. THE SUCCESS WE HAVE IN THE REST OF THE WORLD, WHERE I THINK WE'RE CLEARLY THE MARKET LEADER, WE HOPED TO BE ABLE TO TRANSLATE INTO THE U.S. MARKET. WE DID SO IN TERMS OF OPERATIONAL CAPABILITIES. I THINK WE'VE PROVIDED A VERY CREDIBLE ALTERNATIVE TO THE MAJOR TWO, BUT IT IS AN ECONOMIC COST JUST COULD NO LONGER AFFORD TO BEAR, UNFORTUNATELY.

BRIAN SHACTMAN: YOU SPENT A LOT OF MONEY, A LOT OF TIME BUILDING UP AN INFRASTRUCTURE TO DO THIS BUSINESS AND YOU'RE KEEPING THE INTERNATIONAL. HOW DO YOU SCALE DOWN AND KEEP THE OTHER PART OF YOUR BUSINESS THAT YOU DO OUT OF THE UNITED STATES COMPETITIVE?

MULLEN: WELL, OF COURSE THAT'S NOT EASY BUT THE ADVANTAGE WE HAVE IS THAT WITH THE DOMESTIC FOOTPRINT YOU'VE GOT TO SERVICE EVERY ZIP CODE IN THE UNITED STATES QUITE EXTENSIVELY. AND THAT REQUIRES A VERY MASSIVE INFRASTRUCTURE. THE INTERNATIONAL VOLUMES THAT WE HAVE AND THE INDUSTRY HAS ARE MUCH MORE CONCENTRATED INTO MAJOR URBAN AREAS ONLY. SO WE CAN COVER THE GREAT MAJORITY OF INTERNATIONAL VOLUME WITH A NETWORK OF ONLY 100 STATIONS AS OPPOSED TO MORE THAN 400 STATIONS THAT WE HAD TO HAVE TO COVER THE WHOLE OF THE DOMESTIC PRODUCT. I THINK WE WILL BE LEAVING A PLACE IN EXTREMELY HIGH INTERNATIONAL CAPABILITY WHICH WHEN LINKED WITH OUR INTERNATIONAL CAPABILITIES AROUND THE WORLD, OUR AIRCRAFT IN AND OUT, WE BELIEVE STILL GIVES US AN EXTREMELY COMPETITIVE PRESENCE IN THE U.S.

BURNETT: IN TERMS OF THE JOB COUNT, OBVIOUSLY SOMETHING EVERYONE IN THIS COUNTRY AND EVERY COUNTRY IS OBSESSED WITH AT THIS MOMENT BY, 9,500 U.S. JOBS WILL BE LOST. I KNOW YOU KNOW YOU'RE KEEPING 3,000 TO 4,000 EMPLOYEES. DO YOU PLAN TO ONLY UPGRADE TO 4,000 OR ARE YOU GOING TO PERHAPS ALSO USE CONTRACT EMPLOYEES OR IS IT REALLY 3,000 TO 4,000, THAT'S IT, THAT'S ALL YOU NEED?

MULLEN: WELL, SOME OF THOSE EMPLOYEES WILL INDEED BE CERTAINLY BE SUPLEMENTED BY CONTRACTORS BUT BY AND LARGE THAT'S THE LARGE THE SCALE OF REDUCTION THAT WE HAVE TO MAKE. NOW OBVIOUSLY, WE HOPE, THAT IN THE FUTURE WHEN TIMES IMPROVE THAT WE WILL ADD HEAD COUNT AGAIN BUT RIGHT NOW UNFORTUNATELY THAT'S THE LEVEL OF CUTS THAT HAVE TO BE MADE.

SHACTMAN: JOHN WHAT'S THE TIMETABLE HERE? WHEN ARE YOU GOING TO TAKE CARE OF ALL OF THE JOB ELEMENT, THESE LAYOFFS IMMEDIATELY?

MULLEN: WE'LL BE STARTING IMMEDIATELY. OUR LAST DAY OF DOMESTIC SERVICE WILL BE THE 30TH OF JANUARY. SO THERE'S STILL A FEW MONTHS, A COUPLE MONTHS TO GO THERE, BUT WE'LL BE GRADUALLY WINDING DOWN AS VOLUME WINDS DOWN WITH THE LAST DAY BEING AT THE END OF JANUARY.

BURNETT: THANK YOU SO MUCH, MR. MULLEN.





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